NZD/USD Exchange rate

Editors’ Picks

USD/JPY extends gains above 156.00 after the expected BoJ rate hike

USD/JPY sees a fresh leg higher and regains the 156.00 level in Friday's Asian trading. The Japanese Yen loses further ground, digesting the Bank of Japan's (BoJ) expected 25 bps rate hike to 0.75%. Traders now look to Governor Ueda's press conference for fresh directives.

AUD/USD remains sidelined above 0.6600 amid a steady US Dollar

AUD/USD steadies above 0.6600 in the Asian session on Friday, following the previous day's two-way price swings and a positive close. Against the backdrop of the RBA's hawkish stance, a positive risk tone is seen acting as a tailwind for the Aussie. The US Dollar looks to stabilize the softer US CPI-led slide, capping the pair's upside.

Gold declines despite Fed rate cut hopes as US inflation cools

Gold price keeps pushing lower below $4,350 in Asian trading hours on Friday. The precious metal stays in the red due to some profit-taking and weak long liquidation from shorter-term futures traders.

Top Crypto Losers: Pump.fun, Pudgy Penguins, and Hyperliquid extend bearish streak

Pump.fun, Pudgy Penguins, and Hyperliquid lose ground in an extended bearish streak, recording double-digit losses this week. The surprise drop in the November US Consumer Price Index to 2.7%, beating expectations of 3.1%, fueled a rally in the stock market.

Bank of England cuts rates in heavily divided decision

The Bank of England has cut rates to 3.75%, but the decision was more hawkish than expected, leaving market rates higher and sterling slightly stronger. It's a close call whether the Bank cuts again in February or March.

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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.