What is NZD/CHF?
The NZD/CHF currency pair indicates the exchange rate between the New Zealand dollar (NZD) and the Swiss franc (CHF). It shows how much one New Zealand dollar is worth against the Swiss franc.
The New Zealand dollar, which is issued by the Bank of New Zealand (BNZ), is one of the most widely traded currencies on the international foreign exchange market. It is legal tender in New Zealand and several of its territories and associated states in the Pacific region, including the Cook Islands, Niue, Tokelau, and the Pitcairn Islands. Due to New Zealand's stable economy and high-interest rates compared to other major currencies, it is a popular currency among forex traders.
The Swiss franc (CHF) is known for its stability and is considered a safe-haven currency during times of economic uncertainty. It is issued by the Swiss National Bank (SNB).
What affects the price of the NZD/CHF pair?
The trade balance between New Zealand and other countries can affect the exchange rates of their respective currencies. Economic indicators in both New Zealand and Switzerland, such as Gross Domestic Product (GDP) growth, inflation, employment numbers, and trade balances, can influence investor perceptions of the overall health of the economies, which in turn affect the exchange rate.
The monetary policy and interest rates set by the central banks of New Zealand and Switzerland could play a significant role in influencing the exchange rate of NZD/CHF. Higher interest rates in one country can attract foreign investors seeking better returns, leading to an increase in demand for that country's currency and potentially causing it to appreciate.
New Zealand is prone to natural disasters such as earthquakes, which means that events of this nature can impact the economy and potentially influence the currency's value against other currencies.
What to watch out for when trading NZD/CHF?
Forex traders interested in the NZD/CHF pair should keep an eye out for certain economic indicators in both Switzerland and New Zealand and monitor announcements from the key influential bodies in the two countries. These include:
- Bank of New Zealand (BNZ) and Swiss National Bank (SNB) Interest Rate decisions and monetary policy announcements
- Statistics New Zealand and the Swiss Federal Statistics Office (FSO) for data on Trade Balance, Unemployment Rate, Consumer Price Index (CPI), and GDP
- Natural disasters in New Zealand