The British Pound is obviously a major currency. The New Zealand Dollar (Kiwi Dollar) on the other hand, is not. The pair that they make together, is therefore not a major (the trading volume on the pair is not significant) nor what one would call a commodity pair.
The GBP
The world’s oldest currency still in use today, the British Pound is not just one of the majors, it is the highest valued major, despite a spate of recent setbacks in this regard. The hits that the GBP took recently, were largely attributed to the 2016 Brexit vote, which ushered in a period of utter uncertainty, and markets do not like uncertainty. Brexit also means though that the future of the GBP is now secure: it will never be replaced by the EUR.
The British economy is massive in size and it trades with some of the biggest and richest economies of the world: the US, Germany, France and the Netherlands.
The NZD
The New Zealand Dollar is actually the national currency of a handful of island nations, in addition to New Zealand proper.
The greatest export partners of the country are Australia and the US. The NZD used to be pegged to the USD, but nowadays it is a floating currency. The 2000s ushered in some rough seas for the Kiwi currency, as the global economy stumbled, the problems resonated with the NZD too.
Interestingly, unlike Australia’s economy, New Zealand’s is not a commodity-based one. Food production and agriculture dominate the economic landscape there.
GBP/NZD Analysis
While there are undeniable historical ties between the two countries and currencies, trading-wise, the GBP is much more closely linked to the Eurozone, while the NZD is more exposed to the AUD and the JPY. The geographical distance between the two economies is an obvious hurdle in this regard.
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