New Zealand stands out as a country that is industrialized and is quickly transforming into a highly competitive international market economy. Its GDP almost doubled since 2005 and we are in front of a really rapid growth that boosted personal income while also leading to important technological advancements.
Most of New Zealand’s income comes from trading agricultural resources thanks to the richness that this industry offers at the moment. 20% of the entire GDP comes from the agriculture sector. Also, New Zealand trades a lot with USA, Japan, China and Australia.
New Zealand Forex Trading Overview
RBNZ (Reserve Bank of New Zealand) is the central bank of the country. The policies it issues are focused at maintaining stability of the current financial system. The bank also wants to satisfy currency needs that the public has while trying to maintain inflation at a level between 1 and 3 percent. RBNZ is also the New Zealand Forex Regulatory Authority.
New Zealand Forex Trading Factors to Consider
Whenever trading forex in New Zealand it is highly important that you consider some crucial aspect.
First of all you need to understand that this is a country with a small population. This means that slight increases in migration will immediately have big effects on economy. Also, GDP is highly dependent on agricultural produce. Even so, the nation will be affected by adverse weather conditions from time to time. For instance, recent droughts hit the economy really hard.
The economic stability in New Zealand is linked directly with Australia’s economic conditions. When the market will fall in Australia the New Zealand market will soon follow. NZD stands out as a currency that is linked with commodity. Any increase in prices of commodities will mean an NZD appreciation. Just like the Australian dollar the New Zealand dollar will be traded a lot among forex traders. The main reason for this is the high interest rate that is noticed in the country.
We see NZDUSD in spring 2013. in bearish mode till 0,78.