CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Pairing – The amount of United States dollars (USD) that one can buy for every New Zealand dollar (NZD).
NZD – World’s eleventh most traded currency
USD - World’s most traded currency
Economic factors – The US dollar is particularly susceptible to economic and financial news, due to the country’s position as the world’s largest economy. This includes national news, and international news relating to trading partners, those in Europe or Asia, for example.
Commodities – There is little similarity between the commodities that affect the two currencies in this pairing. Precious metals, oil, and technology will have an impact on the US dollar, while the New Zealand dollar will tend to be more connected to agricultural products, such as wool and meat. That being said, the US agricultural sector is growing, as is becoming more influential over the value of the dollar.
Manufacturing – Manufacturing makes up a very small percentage of New Zealand’s economy, while the US provides nearly 20% of the world’s total manufacturing output, meaning manufacturing is far more important to the US economy, and therefore the US dollar.