What is AUD/NZD?
The AUD/NZD is the forex currency pair that represents the exchange rate between the Australian dollar (AUD) and the New Zealand dollar (NZD). If, for example, the AUD/NZD exchange rate is 1.09, this means that one Australian dollar is equivalent to 1.09 New Zealand dollars.
Nicknamed “Aussie” and “Kiwi” in the forex world, both currencies are widely accepted, especially in the Asia-Pacific region.
Currency traders and investors closely monitor AUD/NZD and other currency pairs to analyse market trends, speculate on the future movements of exchange rates and ultimately make trading decisions.
What affects the price of the AUD/NZD pair?
The price of the AUD/NZD could be affected by a variety of interconnected financial and geopolitical factors. For example, central bank policies, such as interest rate decisions, can impact the exchange rate between the pair. Other factors include economic indicators in Australia and New Zealand such as inflation rates, employment figures, and GDP growth. News, market rumours, and sentiment shifts could also drive short-term fluctuations in the exchange rate. Geopolitical events, such as trade tensions or elections, could also impact currency pairs. Developments in the Asia-Pacific region, particularly those affecting Australia or New Zealand, can influence the AUD/NZD exchange rate.
What to watch out for when trading AUD/NZD?
When trading the AUDNZD forex pair (Australian dollar against the New Zealand dollar), there are several factors and key financial events to watch out for. They include:
- Reserve Bank of Australia (RBA) Interest Rate decisions
- Reserve Bank of New Zealand (RBNZ) Interest Rate decisions
- Australia’s and New Zealand’s Consumer Price Index (CPI) growth shows monthly and yearly inflation figures
- Australia’s and New Zealand’s Employment Data
- New Zealand ANZ and Australia’s Business Confidence Index (BCI)
- Australia’s and New Zealand’s Gross Domestic Product (GDP)
- China is a very important trading partner for Australia and New Zealand. Economic data out of China can have an impact on both currencies