Top Brokers for Investing in NZD to USD (New Zealand Dollar)

Best Forex Brokers for Trading NZD USD 2024

Pepperstone

Licenses:

CySEC, BaFin, FCA, SCB, CMA

Minimum Deposit:

$0

Trade Now

XM

Licenses:

CySEC, ASIC, IFSC, DFSA, FCA

Minimum Deposit:

$5

Trade Now

How to trade NZD/USD?

NZD/USD is the abbreviation for the currency pair comprising the New Zealand dollar and the US dollar. This currency pair represents the exchange rate between the two currencies and is used to determine how much one currency is worth in terms of the other. For example, if the NZD/USD exchange rate is 0.72, it means that one New Zealand dollar is worth 0.72 US dollars. In this article, we will discover how you can trade NZD/USD.

The New Zealand Economy

• According to the ranking of the world's largest companies by nominal GDP, this puts the country at around 52nd place. It has a well-established market economy, with important sectors for aluminum manufacturing, food processing (especially dairy products) and metal manufacturing.
• The country's central bank, the Reserve Bank of New Zealand, is responsible for overseeing monetary policy and maintaining financial stability.
• New Zealand's economic history traces a progression from Polynesian tribes living off the land to the arrival of European immigrants in the 19th century, who began trading with the natives and eventually built their own colonies.

What affects the price of the NZD?

1. The value of the NZD against other currencies is affected by a number of variables. These include Reserve Bank of New Zealand monetary policy decisions, published macroeconomic data and political developments, in addition to variables such as dairy prices, tourism statistics and balance of payments (export and import values).
2. To stay on top of events, traders should be aware of the Reserve Bank of New Zealand meeting times and the release dates of important reports.

Fiscal Policy

• In order to combat inflation, the Reserve Bank of New Zealand, which oversees monetary policy, will raise interest rates.
• On the other hand, if interest rates are lowered in an effort to stimulate economic development, investors may seek currencies with higher yields, which would cause the value of the NZD to fall.

News

• News to consider when trading the NZD includes sentiment, which reveals whether traders are net long or net short, inflation statistics, consumer confidence and GDP itself, the undisputed indicator of economic activity.
• A strong currency and a declining currency are often correlated with GDP growth. Retail sales, services and manufacturing PMIs, and other economic indicators can be found.

Economic and Political Developments

• All exchange rates can be significantly influenced by political and economic factors. For example, when the coronavirus hit the global economy in late February 2020, the New Zealand currency fell sharply against the U.S. dollar as the latter reached record levels as the preferred safe haven due to the ongoing economic turmoil.

Is NZD/USD considered as a popular trading pair?

• According to the Bank for International Settlements, the NZD/USD is the ninth most traded currency in the world and represents the exchange rate between the New Zealand dollar and the US dollar. It instantly tells traders how many U.S. dollars it takes to buy one New Zealand dollar.
• When trading this currency, traders will, as usual, need to consider the reasons behind central bank decisions as the pair spans the economies of New Zealand and the United States.

NZD/USD Trading Hours

The New Zealand dollar can be traded seven days a week, 24 hours a day, from 5pm EST on Sunday to 4pm on Friday.

3 Best Brokers for Trading NZD/USD

1. Pepperstone - Best Overall Broker for NZD/USD Trading.

   Pepperstone provides an optimal trading environment for NZD/USD with tight spreads and rapid execution speeds. Known for its advanced trading tools and reliable platform, Pepperstone is a top choice for both experienced and new traders focusing on the NZD/USD pair.

2. Plus500 - Best Broker with Multiple Licenses, including Dubai.

   Plus500 offers a secure and user-friendly platform for trading NZD/USD. With strong regulatory licenses and robust investor protection measures, Plus500 is ideal for traders looking for a reliable platform to trade this popular currency pair.

3. XM - Best Platform and Excellent Brokerage for Beginners.

   XM excels by offering extensive educational resources and practical online workshops to support traders in mastering NZD/USD trading. The platform's user-friendly interface and comprehensive support make it a great choice for beginners.

Other New Zealand trading pairs

EUR/NZD

The currency ticker for the rate between the euro and the New Zealand dollar is EUR/NZD. It provides traders with real-time information on the number of New Zealand dollars needed to acquire one euro.

GBP/NZD

The exchange rate between the British pound and the New Zealand dollar is represented by the ticker GBP/NZD. It provides traders with real-time information on the number of New Zealand dollars needed to buy one British pound.

F.A.Q

When you can trade NZD/USD?

The New Zealand dollar can be traded on Plus500 or XM seven days a week, 24 hours a day, from 5pm EST on Sunday to 4pm on Friday.

Which commodity is affecting the NZDUSD?

The NZDUSD currency is influenced by commodity prices, just like other currencies (AUD and CAD), although in the case of the NZD currency, the key commodities are dairy and milk prices.

NZD: Is it a risky currency?

Overall, the NZD is considered a stable currency due to the health and outlook of the New Zealand economy. The New Zealand economy is heavily dependent on tourism, so if the sector is thriving, the currency will often be stronger.