29 Jul 2021 14:50
The New Zealand dollar paired with the U.S. dollar is one of the most popular trading instruments on the international currency market Forex. The New Zealand dollar is one of ten most popular world currencies, together with the U.S. dollar, the euro, the Japanese yen, the Australian dollar and other currencies. The second name of New Zealand dollar is "Kiwi", by analogy with the eponymous bird inhabiting the islands of New Zealand. 1.6% of all trades on Forex market daily are made on NZD/USD currency pair.
The New Zealand dollar has a relatively short history, as the currency first appeared in 1933. Before NZD, the official currency was the pound sterling. The New Zealand dollar replaced the pound sterling only in 1967 which became an important event in the history of the country. The name "dollar" was chosen following Australia and South Africa, by analogy with the U.S. dollar as a sign of independence from England.
The initial rate of the New Zealand dollar against the U.S. dollar was set at around 1.39 USD per 1 NZD. However, the rate began to change rapidly after many events happened in the world at that moment, such as the devaluation of the pound, non-binding U.S. dollar to gold, and so on. The New Zealand dollar was among ten most popular currencies in the world only a few years ago, when the volume of trading on NZDUSD financial instrument has grown significantly and it became widely popular around the world.
When trading on NZDUSD, it is necessary to take into account many features of the New Zealand economy, such as GDP, the discount rate, economic activity, the level of trade with other countries and many others. New Zealand is the largest wool producer in the world, as well as its products. Therefore, it is necessary to closely monitor this indicator of the New Zealand economy. It should be noted that New Zealand's economy is highly dependent on its main partners - the U.S., Australia and the Asia-Pacific. For this reason, you should also take into account a variety of economic indicators of main trading partners of New Zealand.