NZD/USD and AUD/NZD: how do you trade the kiwi?
The kiwi is the smallest major, and its pairs have their own quirks: dairy prices, the RBNZ's aggressive style and tight trading hours. Few traders specialise, which is exactly why some find an edge.
Kiwis traders:
- the pair you prefer and why
- the local data you actually watch
- how liquidity and spreads compare with other majors
The commodity currencies guide covers the kiwi's drivers.
Background: Commodity currencies explained: the Australian, New Zealand and Canadian dollars and the Norwegian krone
Why the currencies of big commodity exporters move with iron ore, dairy and oil prices, what each country actually exports, and when the link weakens.
What are commodity currencies?
Currencies of countries where commodity exports are a large share of trade, such as the Australian dollar (iron ore), the New Zealand dollar (dairy), the Canadian dollar (oil) and the Norwegian krone (oil and gas).
Why does the Australian dollar follow China?
Iron ore is Australia's largest export and much of it is sold to China, so Chinese demand and data affect Australia's export income and its currency.
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