Pairing – The amount of New Zealand Dollars (NZD) that one can buy for every Australian dollar (AUS).
AUD – World’s fifth most traded currency
NZD - World’s eleventh most traded currency
- Commodities – In the case of the New Zealand dollar, commodities have an effect similar, if not equal to that on the AUD, due to the country also being rich in resources. Australia’s main export opportunities come from gold, of which they are the second largest producer in the world (behind China) as well as coal, aluminium, nickel, iron, and more. Both Australia and New Zealand have huge agricultural sectors, with livestock coming out of Australia, and the New Zealand economy being heavily reliant on dairy products, meat, fish, and fruit, both countries export wool in large amounts. New Zealand’s wine industry also continues to go from strength to strength.
- Economy – Both countries have typically stable economies, but movement within these economies and their strength in the world can have an impact on the pairing.
- Trading volumes – Due to the number of commodities that are traded by both countries, trading volumes can be as important as commodities markets for the value of the two currencies.
- Crisis – The 2008 debt crisis and its ongoing effects have caused many investors to fear that imports and exports to both countries will deplete, which has obviously affected the pairing.