NZD/USD is another FX pair that can be considered as a barometer for risk sentiment. It goes up when things look bright and goes down when things look bleak. In times of stress in the markets and higher volatility, we can generally see the NZD/USD pair falling as the market goes for the safety of the US Dollar and sells off the NZD. Generally, volatility increases in bad times and that’s why you can see the pair being even inversely correlated with the VIX index, which measures the expected volatility for the S&P500 Index which is another risk asset. There are two schools of thought among economists regarding the usage of tariffs.
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NZD/USD is very similar to AUD/USD and thus the same trading guidelines apply to kiwi as well. It can be a very good pair to trade when you have a monetary policy divergence between the two central banks backing the currencies, the Reserve Bank of New Zealand (RBNZ) for the NZD and the Federal Reserve (the Fed) for the USD. With this interactive tool, you can review the price of NZD/USD, analyze rate trends in real time, track the NZD/USD pair exchange rate in historic terms, and build your trading strategy to trade NZD/USD with leverage on PrimeXBT. The best way to trade currencies in general is to have a fundamental idea for direction, which is generally based on macroeconomics such as central bank’s monetary policy, growth, inflation and so on, and technical analysis for risk management. For example, let’s say that you view the global slowdown and aggressive Fed as a city index review tailwind for the USD in general.
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So, you open the NZD/USD chart and use technical concepts like support and resistance, trendlines, Fibonacci ratios, indicators and so on to decide where to open a trade. For example, in the chart below you can see how you could use a simple breakout of the counter-trendline to enter a short position and hold it as long as you expected the fundamentals to be valid. You could place a stop loss above the most recent swing level, so your loss would be little and limited. This way you trade both in the direction of the fundamentals and you risk a little to make more than a little.
Finally, you can use the broker trading platform to execute your trades. Most retail brokers let you also trade on MetaTrader 4 or MetaTrader 5, which are two of the most famous and popular trading platforms among retail traders. Most retail brokers offer CFD trading for Forex, although you can also trade NZD/USD via other derivatives like futures or options that trade on exchanges but are more expensive than CFDs.
On the other hand, when there’s global growth USD weakens and currencies like NZD, AUD, CAD, EUR and so on appreciate against it. To show this correlation, we can take the US ISM PMI, which is correlated with Global PMIs since the US is the biggest economy in the world and compare it with NZD/USD chart. Below you can see how the changes in the ISM PMI (orange line) have an inverse correlation with NZD/USD (blue line). Thus, if you expect global growth to slow down, you may want to look more for shorts on NZD/USD and vice versa if you expect a stable or higher global growth.
Hence, Trump wants to focus on these three nations when imposing tariffs. He also plans to use the revenue generated through tariffs to lower personal income taxes. Tariffs are customs duties levied on certain merchandise imports or a category of products. Tariffs are designed to help local producers and manufacturers be more competitive in the market by providing a price advantage over similar goods that can be imported. Tariffs are widely used as tools of protectionism, along with trade barriers and import quotas.
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The Federal Reserve is also the most important central bank in the world. There are different ways you can display the exchange rate price movements on a chart. The most common ways include a line chart or a bar chart, but the most popular and used one is the candlestick chart.
The NZD/USD currency pair, also called the “Kiwi”, tells the trader how many US dollars (the quote currency) are needed to purchase one New Zealand dollar (the base currency). Together with the Australian Dollar and the Canadian Dollar, the NZD is a commodity currency, that is a currency whose country’s exports are largely comprised of raw materials (precious metals, oil, agriculture, etc.). The Xe Rate Alerts will let you know when the rate you need is triggered on your selected currency pairs.
Though the New Zealand Dollar (NZD) is down against the US Dollar, its outlook is improving as the US-China trade truce will have an indirect support for the Kiwi economy. Meanwhile, growing expectations that the Reserve Bank of New Zealand (RBNZ) will cut interest rates further could limit the NZD’s upside. In a joint statement, the US and China have announced a 90-day pause on tariffs and lowered them by 115%. The truce between the world’s two largest powerhouses is expected to diminish elevated US consumer inflation expectations. Our currency rankings show that the most popular US Dollar exchange rate is the USD to USD rate.
The candlestick chart shows you instantly and in real time where the price has opened, closed and how much up and down it went on any given timeframe. Markets roared back to life as the US and China hit pause on their escalating trade war, with both sides emphasizing mutual respect and dignity. But it wasn’t the fine print that moved markets—it was the mood shift. Investors rushed back into risk assets, betting that the worst might be behind us. Always choose a good, reputable, and regulated broker to avoid unnecessary problems. When you open a trading account with a broker, you will have to supply your KYC documents and, once approved, deposit money to be able to trade.
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