AUD/NZD

The AUD/NZD is the currency pair encompassing the Australian dollar of the Commonwealth of Australia (symbol $, code AUD), and the New Zealand dollar in New Zealand (symbol $, code NZD).

The pair’s rate indicates how many New Zealand dollars are needed in order to purchase one Australian dollar.

For example, when the AUD/NZD is trading at 1.1500, it means 1 Australian dollar is equivalent to 1.15 New Zealand dollars.

The Australian dollar (AUD) is the world’s fifth most traded currency, whilst the New Zealand dollar (NZD) is the world’s tenth most traded currency, resulting in relatively mild liquid pair.

Most forex brokers offer spreads for the AUD/NZD between 2 and 5 pips. The pair’s movement is particularly irregular, despite its fairly low volatility.

How to Trade AUD/NZD?

Key economic news reports for this pair include the Westpac Leading Index for Australia. This tracks the growth of a combined index that considers nine barometers of economic activity.

Moreover, the ANZ Business Confidence report for New Zealand is also an important factor, measuring 1500 businesses assessing potential optimism for the next twelve months.

Of note, both the AUD and NZD are risk-on currencies. In some ways trading the AUD/NZD is a safeguard against calamity as the AUD and NZD are not traded against a safe haven currency, but each other.

The AUD/NZD also has high levels of volatility as well and is very active in one particular time zone, somewhat limiting its popularity.

The pair is seen as a good barometer for trading systems given the lack of external stimuli that exist capable of upending the pair.