Cross Euro The New Zealand dollar is often underestimated. High income and low risk are the main advantages of the tool.
NZD is the abbreviation for the New Zealand Dollar. Currency is used both on the main territory of the state and on its island possessions (Niue, Cook Islands, Tokelau).
In everyday life, NZD is usually called "kiwi," in honor of the symbol of New Zealand. Since 1999, thin plastic has been used to produce money in the country.
The New Zealand dollar appeared in 1967, 1.68 kiwis are equal to one euro. NZD stability is mostly achieved due to the floating exchange rate. New Zealand is included in the list of developed countries of the world; the standard of living and development is in the top lines of the world ranking.
The bulk of GDP is agricultural income, food exports. More than half of the manufactured products are purchased by Australia, the USA, Japan, and China.
Gross domestic product is growing at least 4.8% per year, and inflation is kept at 3.8% as much as possible. The unemployment rate does not exceed 5.7% for the entire territory.
In an era of rapidly rising energy prices, New Zealand is building more and more hydropower plants, which allows us to abandon part of unnecessary imports and not to withdraw funds abroad.
The euro, in turn, depends on the economy of 19 European Union countries at once, which recognized it as official on its territory, and therefore can influence it.
Moreover, the EU includes not only economically stable countries (Germany, France, Italy), but also weak ones (Greece, Slovenia). The average level of the economy determines the euro exchange rate, and the Central European Bank is engaged in its regulation by raising or lowering interest rates.
To successfully trade in the currency market, you need to study the economic side of the states whose currency is to be speculated.
Here, an important role is played by such indicators: inflation rate, unemployment rate, GDP, investment, popular business, consumption.
It is enough to regularly study economic news, where everything is detailed in charts and graphs. All these indicators affect the intrinsic value of the currency.
New Zealand has a low unemployment rate, is well developed, and economically stable: this means that the cost of “kiwi” will not jump against the euro. Regularly studying the news, you can trace the course of the given currency, learn how to calculate it.
Buying a kiwi can be a profitable long-term investment, with the prospect of accumulating for several years. The purchase of such a currency can become an economic refuge for personal funds.
You can divide the money into several parts, save one of them by buying up “kiwi,” while at the same time playing the rest on the stock exchange
In general, the EUR/NZD pair is quite stable and predictable, and it can be used to teach beginners, to develop their strategies. Of greater interest, in this case, is the euro.
The Central European Bank (Frankfurt) regulates the EUR exchange rate by lowering or raising interest rates.
Every first Thursday of the month (except January, in connection with the holidays), a meeting of directors is held, after which the results are announced.
In turn, the banks of the participating countries that did not accept the euro for everyday life on the territory of their country are involved in adjusting their currency based on the results. In most states, the attitude of the authorities towards currencies is quite flexible, consistent with the ECB's chosen exchange rate.
The state of the euro depends on 19 countries of the EU member states that have adopted it instead of their currency. Some investors are pulling on a stable state of the coin - Germany, France, Italy. However, some consumers do not invest anything. Moreover, sometimes they have an adverse reaction to the state of the euro - Greece, Slovenia, Estonia. The European Central Bank has to balance at the junction of these two indicators, trying to keep the currency from falling.
To maximize the benefits of trade, the trader needs to monitor the changes in the commodity market, on which the New Zealand economy depends, as well as the commercial releases of the ECB.
The most optimal solution is medium-term orders. In this format, the trader receives a minimum of risk and a fairly wide trading corridor.