NZD/MXN is not a very popular currency pair on Forex market. Being the cross rate against the U.S. dollar, the pair is greatly affected by it. In such a way, by merging the NZD/USD and USD/MXN price charts, it is possible to get an approximate NZD/MXN price chart.
As the U.S. dollar has a great impact on both currencies, it is necessary to monitor the U.S. economic indicators such as the discount rate, GDP growth, unemployment rate, new vacancies and many others to analyze the pair. However, the discussed currencies can respond with different speed to the changes in the U.S. economy.
Besides, when trading NZD/MXN, it is necessary take into account such indicators of the New Zealand economy as GDP growth, discount rate, economic activity, level of trade with other countries, etc. New Zealand is one the largest wool producers in the world. This industry contributes a lot to the country's economy. It should be noted that New Zealand's economy is highly dependent on its main trading partners - the USA, Australia, and the Asia-Pacific region. For this reason, you should also take into account a variety of economic indicators of the main business partners of New Zealand.
Mexico takes the first position among Latin American countries in terms of per capita income. It is the most developed country in Latin America. Mexican economy is mainly represented by the private sector: in 1980s there was a mass privatization program which was implemented with the purpose to overcome the economic crisis. Now the majority of enterprises are owned by foreign companies.
Mexico is a NAFTA (the North American Free Trade Agreement) member. Country's active trading with the USA and Canada yields a major part of the government revenue.
Mexico is the largest oil exporter in its region. This sector makes up the greater part of country's export receipts. However, the main source of income for Mexico is its service sector.
Although Mexico has huge oil and gas reserves, its natural hydrocarbon reserves are strongly depleted. Thus, the government has to reduce oil and natural gas output to avoid new problems in the economy. According to the forecasts, Mexico will soon be forced to import oil from abroad to meet the needs of its economy. Such circumstances have a significant impact on the Mexican national currency which depends on global oil prices. In addition, the Mexican peso exchange rate is affected by the international rating of the country which is calculated by international rating agencies.
NZD/MXN has low liquidity as compared to EUR/USD, USD/CHF, GBP/USD, and USD/JPY. Therefore, when you analyze this financial instrument, you should primarily focus on NZD/USD and USD/MXN pairs.
As a rule, brokers set a higher spread for cross rates than for major currency pairs. Therefore, read carefully the terms and conditions offered by the broker before trading crosses.