New Zealand Exchange Rate: Insights
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New Zealand is an essential gold producer in the world, and its economy is strongly based on the exportation of raw materials, which means a country completely dependent on international trade. That is why the New Zealand dollar is known as a commodity currency... To get a powerful view of how the country's economy is tightened with raw materials, just look at the New Zealand exchange rate every time there's a big event in the commodity market. When gold is increasing, kiwi goes up... The reverse is also true. The country has been growing primarily based on a set of commodities like wool, gold, silver, coal, iron...expanded these nowadays to fruits, wine...Exportation of commodities has a huge contribution to the economy, and we can say that the farming community is the pillar of the New Zealand economic success. Numbers speak by themselves. Agriculture is the biggest contributor sector to the economy, for about 2/3. It implies that more than 60% of New Zealand yearly budget is based on exporting agricultural products (Fruits, vegetables, tobacco...) In other words the power of the New Zealand dollar is strongly dependent on the good/bad prices of these products on the international market... In short, the New Zealand rate, is extremely correlated to commodities, and must, in no way, be analyzed without getting a clear view of the commodities prices. Checking Today Currency Exchange Rates , you will see how significantly the kiwi rose, as well as what gold did. There's also another element about the New Zealand dependency to raw materials: Massive importation of energy products like oil...If you're a kiwi trader or every other trader interested in buying or selling the kiwi, you have to be also concerned by commodities prices on the international market. In case, you would like to buy the New Zealand dollar, and the news let you know that gold spot chart or wool, etc...is increasing, that is a good indication to be in that trade, as well as to maintain it for a fairly lengthy period of time. At the same time, the rise of commodities prices that the country imports will set off a fall of the kiwi exchange rate . All this information is useful for a trader, as well as a tourist or a traveler willing to benefit from the currency rates fluctuations...According to many experts, the New Zealand dollar is one of the greatest currencies to trade in the Forex market. FAP Turbo Here!