Piece written by Mareike Kramper, Trive Financial Copywriter

When it comes to Forex trading in New Zealand, there’s one thing that immediately comes to mind – the Kiwi. No, not the fruit, we’re talking about the indigenous bird that’s also the symbol of New Zealand currency.

The New Zealand Dollar (NZD), commonly referred to as the ‘Kiwi’, is the official currency of New Zealand. The Kiwi has been in circulation since 1967, when it replaced the New Zealand Pound as the country’s official currency. The name ” Kiwi ” is derived from the kiwi bird, which is native to New Zealand and is a symbol of the country.

The New Zealand Dollar is abbreviated as NZD and is often identified by the Dollar sign ($). One Kiwi Dollar is divided into 100 cents, similar to the US Dollar. The Kiwi is a floating currency, which basically means that its exchange rate is determined by market supply and demand, rather than being pegged to a specific value.  As a relatively high-yielding currency, the New Zealand Dollar is considered a carry trade currency.

A price quote for this currency pair tells the reader how many U.S. Dollars are needed to purchase one New Zealand Dollar. The NZD/USD currency pair represents the New Zealand Dollar and U.S. Dollar exchange rate, where 1 New Zealand Dollar is worth a certain number of U.S. Dollars. For instance, if the pair is trading at 1.50, it means that 1 New Zealand Dollar can be purchased for 1.5 U.S. Dollars.

Now, trading Kiwi can be a tricky business. You need to have an eagle-eye on the market trends, and a beak-sharp strategy to navigate through the ups and downs. Even with these strategies, it can still be hard to profit from the value fluctuations, which are so often unpredictable out in the market. And let’s not forget about the occasional hawkish intervention by the central bank!

So, New Zealand’s economy heavily relies on agriculture, which accounts for over two-thirds of its exports. The price of dairy, for example, has a significant impact on the value of the NZD. As the world’s largest exporter of whole milk powder, a rise in milk prices can lead to an improvement in the New Zealand economy, and traders may anticipate this by increasing the currency’s value.

Tourism is also a significant contributor to the New Zealand economy. If the cost of visiting New Zealand decreases, it is likely to stimulate economic growth, leading to an appreciation of the currency.

New Zealand’s economy is heavily dependent on international trade, which makes the Kiwi exchange rate very important. The value of the Kiwi can be affected by a multitude of factors, including the country’s terms of trade, interest rates and global economic conditions. As a result, the Kiwi exchange rate can be volatile and subject to unpredictable fluctuations.

Kiwis aren’t afraid to take a leap of faith. Remember, the bird jumps off cliffs without any hesitation!

And despite its volatility, the Kiwi is a popular currency for investors and traders, particularly in the Asia-Pacific region. The New Zealand Dollar is also accepted as legal tender in the Pacific Island countries of Niue, the Cook Islands and Tokelau.

In recent years, the New Zealand Dollar has been relatively strong against other major currencies such as the US Dollar and the Euro. This has been due to several factors, including New Zealand’s strong economic performance, high interest rates and stable political environment. One should note, however, that past performance is not always a perfect indication of the future.

Overall, the New Zealand Dollar, or Kiwi, is an important currency in the global economy, and its value and performance is closely watched by investors and traders around the world.

This material is provided for informational purposes only and does not constitute financial, investment or other advice. No opinion contained in this material constitutes a recommendation by Trive Financial Services Malta Limited or its author as to any particular investment, transaction or investment strategy and should not be relied upon in making any investment decision. In particular, the information does not take into account the individual investment objectives or financial circumstances of the individual investor. Trive Financial Services Malta Limited shall not be liable for any loss, damage or injury arising from the use of this information. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with Trive Financial Services Malta Limited. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.