NZDUSD: Live New Zealand Dollar-Dollar Rate, Chart, Forecast
NZDUSD is among the most traded currency pairs, and it enjoys a high level of trading volume and liquidity with an acceptable level of daily volatility. Experts predict that the NZD/USD rate will experience a bullish movement in the future, meaning that the NZD will strengthen against the US Dollar or the currency will weaken. Let’s learn more about this forex pair, and explain how and where to start trading it.
What is NZDUSD? Overview
NZD USD represents the New Zealand Dollar to US Dollar currency pair traded on the foreign exchange markets. The NZD to USD pair is sometimes nicknamed “Kiwi”, in reference to the bird specific to New Zealand. The currency composition makes this combination a major forex pair. It is additionally classified as a commodity pair, because of New Zealand’s natural resources and its importance as an exporter of agricultural products.
In this pair, NZD is the base currency, whereas USD is the quote currency. Consequently, the NZDUSD rate tells the number of US dollars needed to buy one New Zealand Dollar. Stated differently, it shows the price of one NZD against the USD. For instance, a rate of 0.7200 for the 1 NZD to USD indicates that you will need 72 US dollar cents to buy one New Zealand Dollar.
Based on its trading volume, this forex pair is positioned among the most traded currency pairs in the forex market, which is why it is considered to be a liquid pair.
NZD USD Chart
The chart provides an overview of changes in the NZDUSD exchange rate in real-time. Traders can get an insight into the price fluctuations on different time frames like an hour, day, week and month by monitoring the NZDUSD live chart.
How to Read the NZDUSD Chart?
A forex pair always has two components: the base currency or NZD and the quote currency or the USD. When trading an NZD USD pair, it means that you decide whether to buy or sell the NZD against the USD at the current rate. Ultimately, you buy NZD while selling USD. The exchange rate quote commonly comes with two rates, the bid (sell) and the ask (buy) rate and the difference between the two is called a spread.
Movements in the NZDUSD exchange rate are denoted with pips which represent a fraction of a cent. Irrespective of the forex pair, the quoted rate always shows the number of units from the second currency needed to be exchanged for one unit of the base currency. Hence, if the bid and ask prices are 0.70543 and 0.70636 respectively for example, then this is read as follows:
- Traders can buy (exchange) 1 NZD for 0.70636 USD
- Traders can sell (exchange) 1 NZD for 0.07543 USD
The difference between the two rates is called spread, and it is expressed in pips. If you want to convert USD to NZD, you need to select the exchange rate for the new currency pair where USD is the base currency, and the price of 1 USD is quoted in New Zealand Dollars.
NZD USD Historical Data
Let’s take a look at the NZD USD historical fluctuations, opening and closing exchange rates.
NZDUSD Exchange Rate History
The NZDUSD chart displays five major downtrends and price reversals in the last thirty years. The forex pair experienced one of the most significant depreciations from the end of 1996 until the last quarter of 2000. Overall, in this bear movement, NZDUSD rate declined by 40%. The rate bounced back in 1998, but then resumed its downtrend. In 2000, NZDUSD hit a decade-low, when 1 NZD was exchanged for 0.39 USD and started moving sideways between 0.39 and 0.44.
At the end of 2001, NZDUSD rate started a bull trend that lasted until the first quarter of 2004, when the exchange rate surged more than 70%. The NZD to USD exchange rate climbed to its highest rate for the last three decades in August 2011, reaching 0.8786. In 2014, NZDUSD rate ascended to 0.8756. The New Zealand to US dollar pair then registered another major bull run in mid-2009 when it increased by 45%. In the past, this forex pair has recorded movement of up to 20% in a single month, but in general, fluctuations of less than 10% are more frequent.
NZDUSD Exchange Rate Today
Looking at the NZDUSD chart, it can be noticed that the NZDUSD forex rate typically fluctuates within a range of under 10%, with anticipation for a potential breakout. Its weekly fluctuations regularly move through retracements and rebounds..
What Influences NZDUSD Exchange Rate?
The NZDUSD forex pair is composed of two heavily traded currencies. Hence, the factors that might affect the exchange rate could strengthen the NZD, weaken the USD, or both. Also, as a commodity pair, changes in the price of relevant commodities will positively or negatively affect the exchange rate.
Other factors that affect NZD/USD price coming from New Zealand’s economy are:
- Changes in the price of dairy in the global markets, because New Zealand is a major exporter of whole milk powder
- Tourism is another important sector for the country. Hence, an increase or decrease in tourism activities affect the value of NZD
- The monetary policy created and implemented by the Reserve Bank of New Zealand
- Movements in Gross Domestic Product, Consumer Price Index, Producer Price Index, Employment rate, etc.
- Movements in interest rates
- Political events in New Zealand.
More significant factors related to the USD as a quote currency that could cause a rise or fall in the NZD/USD exchange rate are:
- FED monetary policy decisions
- Movements in indicators such as Trade Balance, Retail Sales, Industrial Production, ISM Manufacturing, Non-farm payrolls, Consumer Price Index, etc.
- Political circumstances in the US.
NZD/USD Forecast and Predictions
Analysts predict bullish movements in the NZD USD rate in the future, with the possibility for price reversals. In addition, bullish sentiment dominates the market. The NZDUSD forecast for 2022 and the years afterwards is shown in the following table.
|Year||Forecasted NZD to USD rate|
Economic recovery of New Zealand will strengthen its national currency, while experts anticipate that the USD might maintain its weaker position in the next period. Moreover, experts expect that the New Zealand Reserve Bank will continue to raise interest rates, making the NZD even more attractive for carry traders and potentially increasing the demand for this pair.
Additionally, NZDUSD technical analysis detects buying signals when we plot popular indicators on the monthly chart. However, remember that predicting the price of any instrument is always complex and unpredictable, and NZDUSD predictions should not be taken a an absolute certainty.
Why Trade NZDUSD Today?
The NZDUSD trading volume is a solid indicator about the popularity of this pair on the forex markets. Nevertheless, some of the common reasons that support the NZDUSD live trading are:
- New Zealand enjoys a stable local economy, high degree of export, large foreign bank base and high interest rates. Thus, NZD is perceived as a relatively stable currency based on the strength and future prospects of New Zealand’s economy.
- The NZDUSD pair is popular among carry traders, who sell a currency with a lower interest rate and buy a currency with higher yields
- NZD to USD is the pair of choice for day traders that like to profit from price swings in exchange rates;
- The two currencies come from economies with solid economic stability and growth.
Where Can I Invest in the NZD USD Pair?
Traders can open NZDUSD buy or sell transactions by signing up to an online broker, such as ZFX. ZFX is an optimal broker for trading NZD to USD pair because it is highly regulated, offers many trading tools and operated through the advanced yet user-friendly MT4 platform. The broker also provides an economic calendar, with the key indicators, market news and useful outlooks.
Aside from the NZD to USD, traders have access to other popular forex pairs, stocks, indices and commodities. There are different account types that cover the needs of traders with different trading objectives and capabilities.
How to Trade NZDUSD Now
To buy or sell NZD/USD or other currency pairs with ZFX, start by registering an account.
1 – Open a ZFX Account
To register an account, select “Open an account” in the upper right corner or select the “Accounts” section, where you can decide to open a live trading account or a demo account.
Irrespective of which choice you select, a new window will emerge requesting certain information.
When you complete the form, proceed to the next step to verify your account.
2 – Verify your Account
To verify their account traders, need to present a valid document. ZFX will ask you to upload a scanned copy of your passport, national ID or driver’s license and follow the verification steps. Traders also need to verify that their bank accounts are functional by providing a copy from their bank book or a bank statement.
3 – Make your First Deposit
You can now deposit funds into your account. To do so, go to the “Deposit” section in your account and following the instructions. You can deposit funds via Bank Transfer or Credit Card.
4 – Start trading NZDUSD
To buy or sell NZDUSD pair, download the MT4 trading platform by selecting the platform section on the primary website and downloading your preferred version. You can now log in to your account with the personal credentials. Select live server for live trading or demo server.
You will find NZD to USD pair in the market watch section, and when you select it, a graph with the live exchange rate appears. To buy or sell this currency pair, define the relevant elements for your order, volume, order type, and take profit or stop loss orders, if any.
Tips for NZDUSD Beginner Traders
Some important aspects that should be considered when trading NZD to USD are:
- To augment their trading success with NZD USD pair, traders should monitor the New Zealand Reserve Bank meeting dates and the dates when important reports are published;
- Traders should be informed about NZDUSD news and follow the economic calendar provided by ZFX to track the most important announcements;
- NZDUSD pair can be traded 24 hours a day, five days per week with its trading sessions from Sunday 17:05 to Friday 16:55 (New York time);
- The best time to trade NZDUSD depends primarily on the trader’s personal preferences. However, in general, forex pairs experience major movements when the respective trading sessions overlap.
- Different trading strategies could provide positive results when trading this pair.
- NZDUSD analysis can also be based on the significant fundamental factors, especially for long-term investing.
- NZD USD rate has average daily volatility of around 64 pips depending on the analyzed period, making it a relatively stable forex pair.
- Traders should understand the NZDUSD correlation with other currencies and forex pairs. NZD to USD is in positive correlation with AUD/USD, GBP/USD and EUR to USD pairs.
- You can fine-tune your trading strategies with a demo trading account offered by ZFX.
Bottom Line: Is NZDUSD a Good Investment Now?
The NZDUSD currency pair enjoys high trading volume, which is an indicator of its popularity among different types of traders. The characteristics of New Zealand’s economy, combined with the features of the USD as a reserve currency means that there should be a sufficient movement in the forex rate. Nevertheless, the NZD to USD is a relatively stable currency pair. Future prospects of the New Zealand economy and unfavourable movement in USD value should result in appreciation of the NZDUSD rate making the pair a potential buy.
The NZD USD pair is alluring for its price swings which enable traders to generate profits with a stronger or weaker base currency. To start trading NZDUSD today, you can open an account with ZFX and invest in the pair in just a few easy steps.