NZD/USD - Forex

Currency Pair Basics: NZD/USD: NZD/USD is the abbreviation for the New Zealand dollar and U.S. dollar currency pair. A price quote for this currency pair tells how many U.S. dollars are needed to purchase one New Zealand dollar. For example, if the pair is trading at 1.50, it means that it takes 1.5 U.S. dollars to buy one New Zealand dollar.

Significant Impact of Agriculture on NZD/USD: More than two-thirds of New Zealand's exports are agricultural. Particularly, the price of dairy affects the NZD as New Zealand is the world's biggest exporter of whole milk powder. A rise in milk prices usually leads to an upswing in the NZD/USD pair.

NZD/USD and Commodity Currency: The NZD/USD pair is popular as it offers exposure to a commodity currency, i.e., the NZD. The pair is sensitive to investor sentiment and can be volatile compared to other pairs such as the EUR/USD, GBP/USD, and others.

NZD: High Global Forex Market Participation: The New Zealand dollar is one of the most heavily traded currencies in the global forex market. About US$105 billion in New Zealand dollars are traded daily on the global foreign exchange market.

Nickname for the NZD: The New Zealand Dollar is affectionately nicknamed "Kiwi," after the flightless bird which is a national symbol of New Zealand. It is small, brown, furry and can't fly, just like a kiwi fruit. 

The Kiwi Fruit and NZD/USD: The Kiwi fruit that grows abundantly in New Zealand plays a major role in the country's economy due to its high export volume and therefore influences the NZD/USD cross.

24/7 Trading of NZD/USD: The NZD/USD pair is traded on multiple exchanges around the world, meaning that investors have many different opportunities to trade NZD/USD during different trading hours, depending on their location.

NZD: Among the Top Ten Most-Traded Currencies: The New Zealand dollar frequently sits among the ten most-traded currencies in the forex market. It is used as the national currency and legal tender of New Zealand and associated jurisdictions like the Cook Islands and Tokelau.

Swedish Rounding System and Digital Payments: Each NZ dollar consists of 100 cents, but there are no coins smaller than 10 cents. Thus, the New Zealand currency uses the Swedish rounding system for cash payments. However, digital wallets and contactless card payments are common in New Zealand.

The Historical Context of NZD: Before the New Zealand dollar, trade with European whalers and exchange of goods was a customary practice which distributed food and other materials around the country. By the mid-1800s, pigs, potatoes, and other valuable goods were the de-facto national currency.