NZD/USD Exchange rate
Editors’ Picks
AUD/USD holds firm above 0.7000 after China's RatingDog Services PMI
AUD/USD holds higher ground above 0.7000 in Asian trading on Wednesday, supported by the upside surprise in the Chinese RatingDog Services PMI data for January. The Aussie preserves the hawkish RBA-inspired gains, with further upside likely capped by a slight deterioration in risk sentiment.
USD/JPY advances above 156.00 as fiscal, political woes weigh on JPY
USD/JPY trades with a positive bias for the fourth straight day on Wednesday and looks to build on a one-week-old uptrend above 156.00. Concerns about Japan's fiscal health and political uncertainty counter hawkish BoJ expectations, undermining the Japanese Yen ahead of the February 8 snap election, while boosting the pair. However, a softer risk tone could limit losses for the safe-haven JPY and cap the pair amid subdued US Dollar price action.
Gold extends recovery toward $5,050 as US-Iran tensions boost haven demand
Gold price builds on the previous recovery toward $5,050 in the Asian session on Wednesday. The precious metal extends the rebound after a historic and volatile sell-off last week. Traders weigh the next round of US economic signals amid a resurgent demand for safe-haven assets and renewed US-Iran geopolitical tensions.
Why is the crypto market crashing?
Bitcoin and the broader crypto market are experiencing a heavy downturn on Tuesday amid negative sentiment following the latest tech earnings. The top crypto briefly declined more than 5% over the past 24 hours, sliding below $73,500 before quickly recovering above $75,000 at the time of publication. Over the past two weeks, Bitcoin has lost more than 23%, eroding about $401 billion in market capitalization.
Gold and silver recovery continues, but equities sink as tech is shunned
The risk recovery is on pause as we move through Tuesday. After signs that a recovery in precious metals could boost overall risk appetite earlier today, a nasty sell off in tech stocks has pushed the Nasdaq and the S&P 500 down by 1.7% and 1.1% respectively.
Majors
Cryptocurrencies
Signatures
ABOUT NZD/USD
The NZD/USD pair indicates how many US Dollars (USD) are required to purchase one New Zealand Dollar (NZD). Often seen as a minor currency, its relevance stems from New Zealand’s strong commercial ties with its neighbor, Australia, and China. The New Zealand Dollar is commonly referred to as the Kiwi, named after the bird that symbolizes New Zealand.
The New Zealand Dollar, along with the Australian Dollar (AUD) and the Canadian Dollar (CAD), is considered a commodity currency, meaning its value is closely tied to the export of raw materials such as precious metals, Oil, and agricultural products .
For many years, the NZD (like the Australian Dollar) has been one of the preferred choices for carry traders, making it very sensitive to changes in interest rates.
HISTORIC HIGHS AND LOWS FOR NZD/USD
- All-time records: Max: 1.49 on 5/11/1973 – Min: 0.3962 on 16/10/2000
- Last 5 years: Max: 0.7465 on 19/02/2021 – Min: 0.5469 on 13/03/2020
* Data as of December 2024
ASSETS THAT INFLUENCE NZD/USD THE MOST
- Currencies: The Australian Dollar (AUD), the Chinese Yuan (CNY), and the Japanese Yen (JPY), as Australia, China, and Japan are the main economic regional partners of New Zealand. This group also includes the following currency pairs: EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CHF, USD/CAD, GBP/JPY and EUR/JPY.
- Commodities: First and foremost, coal. New Zealand has extensive coal resources, contributing approximately 10% to the country’s energy supply (excluding transport fuels). Other key commodities are Silver and Iron Ore.
- Bonds: GNZGB10 (New Zealand 10-Year Government Bond Yield), AGB (debt securities issued by the Australian Government), and T-NOTE 10Y (10-year United States Treasury note).
- Indices: NZX (New Zealand Exchange), ASX (Australian Securities Exchange), and Nikkei 225 (a stock market index for the Tokyo Stock Exchange).
INFLUENTIAL ORGANIZATIONS, PEOPLE AND ECONOMIC DATA FOR NZD/USD
The organizations and people that affect the most the moves of the NZD/USD pair are:
- The Reserve Bank of New Zealand (RBNZ). It is New Zealand's central bank. Its primary role is to “give people, communities and businesses the confidence to spend, borrow and save money” by maintaining a sound and efficient monetary and financial system. The RBNZ achieves this by managing inflation to keep prices stable, regulating banks and finance companies, producing New Zealand’s banknotes and coins and operating effective wholesale payment and settlement systems. The current governor is Anna Breman.
- The New Zealand Government – whose Prime Minister is Christopher Luxon – and its Ministry of Business, Innovation, and Employment (MBIE), which implements policies that affect the economy of the country.
- Asia-Pacific Economic Cooperation (APEC), a forum for 21 Pacific Rim member economies that promotes free trade throughout the Asia-Pacific region.
- The US Government and its President Donald Trump. Administration statements, new laws and regulations, or fiscal policy decisions can influence the value of the US Dollar and its trading pairs, including the New Zealand Dollar.
- The Federal Reserve of the United States (Fed), whose chairman is Jerome Powell . It is the central bank of the US and it has two main targets: to maintain the unemployment rate at its lowest possible levels and to keep inflation around 2%. The Federal Reserve System's structure is composed of the presidentially appointed Board of Governors and the partially appointed Federal Open Market Committee (FOMC). The FOMC organizes eight scheduled meetings in a year to review economic and financial conditions. It also determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth.
Economic data to watch for NZD/USD traders:
- GDP (Gross Domestic Product): The total market value of all final goods and services produced in a country. It serves as a gross measure of economic activity, indicating whether a country's economy is expanding or contracting. A high or a better - than-expected reading is generally positive for the NZD, while a low reading tends to be negative.
- Inflation indicators: Key measures such as the Consumer Price Index (CPI) and the Producer Price Index (PPI) reflect changes in prices.