New Zealand Dollar / US Dollar (NZD/USD)

📜 History

New Zealand switched from the pound to the New Zealand dollar on 10 July 1967, during decimalisation. For decades the currency was fixed to other currencies and adjusted by the government. A currency crisis in 1984 led the new Labour government to float the dollar in March 1985. In 1989 the Reserve Bank of New Zealand Act made inflation targeting the central bank's main goal, a world first. The Asian financial crisis of 1997-1998 and the 2008 global financial crisis both pushed the Kiwi sharply lower. In the 2000s the pair was popular with carry traders, because New Zealand interest rates were high relative to the US. The COVID-19 shock in 2020 caused another sharp fall before a recovery.

⚙️ What moves the price

• →RBNZ interest rate decisions and guidance, compared with Federal Reserve policy.
• →New Zealand inflation, employment and GDP data.
• →Dairy prices, especially the Global Dairy Trade auction, and other commodity prices.
• →US dollar strength, driven by US data and Fed expectations.
• →Global risk sentiment: the Kiwi often rises in risk-on periods and falls in risk-off periods, with China demand news also important.

Character

• •Fairly volatile, often moving more than EUR/USD or USD/JPY.
• •Tends to follow risk sentiment and commodity trends.
• •Liquidity is good in the Asian session and best during the London-New York overlap.
• •Can gap on weekend news.

When to trade

• ✅Asian session, when New Zealand and Australian markets are open.
• ✅London-New York overlap, when liquidity is highest.
• ✅Around scheduled RBNZ decisions and New Zealand data, with extra caution.

When not to trade

• ⛔Right before or during RBNZ decisions, US Non-Farm Payrolls or major US CPI releases, when spreads widen and moves are sharp.
• ⛔Thin late-US-session hours or the weekly open, when gaps and slippage are common.
• ⛔Using high leverage, because the pair can move quickly against a position.

Our verified setups

Latest closed signals

• SELL · H1 · FLIP06/11−$42
• BUY · H1 · SL30/10−$107
• BUY · M15 · SL30/10−$114
• SELL · H1 · SL22/10−$113
• SELL · H4 · SL20/10−$109

📊 Weekly report

Simulation: $10,000 deposit, $100 risk per trade. Pips — price movement; $ — result at fixed risk.