NZD / USD (New Zealand Dollar / US Dollar)

How can You trade the NZD/USD?

Traders have the option of trading the currencies’ physical form at their bank or other financial institution, but this method often takes longer to show a return on investment.

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Trading derivative products such as futures and options are yet another option, which enables traders to trade an asset at only a fraction of its actual price. It does, however, carry a potential risk to your invested capital if the trade ends up going against your original speculation.

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One of the more popular options is trading with an online broker like CM Trading, where you can easily trade hundreds of assets and enjoy numerous lucrative trading opportunities everyday.

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What factors influence the NZD/USD?

  • Being the largest exporter of powdered milk, New Zealand’s currency is very sensitive to reports relating to the global or local milk industry.
  • Tourism also plays a major role in the kiwi economy.
  • Interest rate decisions and other economic events can also cause either currency to rise or fall against its counterpart depending on their respective performance.

What to consider when trading the NZD/USD?

Currency traders could enjoy trading the New Zealand dollar against the United States dollar, as its fluctuations in market value could translate into handsome profits in short term positions.

In addition, the NZD is considered a high yielding currency, so traders who invest in low yielding currencies like the Swiss franc and Japanese yen could add it to diversify their trading portfolios. Traders who are well-acquainted with the Australian dollar for their similarities and close relationship.

Did you know?

The first US dollar paper note was printed in 1862 due to the shortage of at the time. The first coins were minted in 1792.
In addition, torn or malformed notes can be exchanged, but you would need to have more than half the note in question.