New Zealand Dollar General Info
The New Zealand dollar is informally called the ‘kiwi’ by foreign exchange traders and analysts due to the kiwi bird, which is native to New Zealand, being something of a national symbol for the country. The kiwi bird is also depicted on New Zealand’s one-dollar coin.
Although the New Zealand dollar is considered one of the eight FX ‘majors’, it is actually only the world’s eleventh most traded currency. Apart from the other seven majors – the US dollar, euro, yen, pound, Australian dollar, Canadian dollar and Swiss franc – the New Zealand dollar’s share of the foreign exchange market (around 2%) also falls behind that of the Mexican peso, the Chinese yuan and the Swedish krona. The currencies of China and Mexico are not considered majors due to their emerging market status, while the krona’s share of the market has only exceeded that of the New Zealand dollar fairly recently (in 2016, according to the Bank for International Settlements) and so is not yet considered ahead of New Zealand’s currency.
In the past two decades, the New Zealand dollar’s lowest value against the US dollar occurred in October 2000 when the NZD/USD exchange rate traded at just 0.3901. The currency’s two-decade high occurred in August 2011 when NZD/USD reached 0.8842, although it could be said that this high valuation was achieved twice, because in July 2014 the exchange rate reached 0.8836, just several pips shy of that achieved in 2011.
Among the majors, the New Zealand dollar is considered a riskier currency, which means that its value will fall against the larger majors (especially JPY, USD, CHF, GBP and EUR) during periods of economic uncertainty or when global geopolitical risk is elevated, or during bouts of high market volatility.
NZD - Market View
Big Bank Expects NZD to Fall in Coming 6-12 months
Analysts at Citi Bank noted in late May that improving trade, strength in dairy prices and record highs in US stocks (indicative of receding market risk) have supported New Zealand’s currency, but regardless were still forecasting a fall in the NZD/USD exchange rate to 0.68 in the coming 6-12 months. A move to that level would put NZD/USD at rates not seen since June 2016 and would mark a fall of 3.6% from the time of the report.
NZD/USD - 10:00 NZST
1 Day 1 Week: New Zealand Dollar was up against the United States Dollar with the NZD/USD at 0.7308, a rise of 0.59% and also up for the last 7 days with a rise of 0.7%.
3 Month Trend: NZD/USD is trading at 3-month highs and for the quarter is up 4.02%.