The New Zealand dollar is one of the most stable currencies on the Forex market, it is unofficially called “kiwi”. It is a kind of a bird, that is also the symbol of this country and is located in the southern hemisphere of the globe. The Reserve bank is responsible for issuing the currency. Despite the fact that New Zealand, along with Australia, belongs to the Pacific region, and trading sessions with the New Zealand dollar attract the attention of traders during trading hours associated with the Pacific zone, NZD/USD can be traded non-stop. The greatest activity associated with this pair occurs during the European trading session.
The New Zealand dollar (NZD) is one of the top ten world currencies in terms of trade volume; the currency is often used in trading operations since the country maintains high-interest rates. The economy is tied with the export of goods, food retail. A lot depends on revenue items such as sheep wool and meat, and dairy products. In the last decade, tourism began to actively develop. The guests of the country are attracted by the life and traditions of indigenous peoples, mainly Maori. Besides, New Zealand has gained popularity among tourists after shooting the films directed by Peter Jackson’s based on the fantasy works of J. R. R. Tolkien.
You can talk non-stop about the US dollar, it is one of the most stable currencies in the world, and most of the transactions on the Forex market are completed with it. According to some reports, transactions that are carried out with the American dollar take up more than 40% of the total number of transactions in the foreign exchange market. The dollar owes its name to the German thaler. The first settlers from Holland distorted the German name and began to call any silver coin a dollar. It is interesting that before the Civil War in the 60s of the 19th century, the United States did not have a single national banknote system.
At that time, dollars were printed by more than fifteen hundred private banks, while the design of the bill had tens of thousands of variations. It was only at the beginning of the 20th century that the US Federal Reserve System began to control the production, distribution, and accounting of US dollars, which until today has been acting as a regulator.
Both currencies are a kind of connecting link between two large economies. The growth of the New Zealand dollar was due to the commodity boom and immediately after that attracted the attention of investors. The NZD/USD pair may be interesting for both novice traders and experienced professionals, however, when trading, you always need to distinguish a reasonable risk from an unjustified one.
The pair has very low volatility, even during the period of the greatest trading activity it does not exceed one hundred points. This period always attracts newcomers, because the risk of losing their funds is significantly reduced. Professionals are less active in relation to the NZD/USD pair, because the lower the volatility is, the lower the potential profit will be. The pair can attract market participants who prefer medium and long term trading strategies. Remember about the correlation between NZD/USD and AUD/USD pairs, and not only because Australia is nearby. The AUD/USD pair depends on the price of gold, so if the price of the metal changes, this will entail changes in the NZD/USD pair.