The pair that the EUR makes with the New Zealand Dollar is not a commodity pair, nor does it qualify as a major pair. After all, the Kiwi Dollar is not a major and the trading volumes between the two currencies are not particularly large either.
The most ambitious monetary union experience in history, the Euro ties together the 21 countries of the Eurozone. 6 more countries are compelled by treaty to join the currency block, though, as far as the near-future is concerned, the Eurozone is not expected to expand.
As it is though, it is already one of the strongest economic blocks in the world, and the power of its currency, the EUR, extends far in every direction, influencing the national currencies of no fewer than 23 other countries. The EUR is also the second most traded currency and the second most popular reserve currency.
The official currency of New Zealand, the NZD is also used by a handful of island nations. Supported by an economy focused on agriculture and food production, the NZD is obviously affected by the swings in the prices of these products, as well as by interest rate changes.
The currency went through a bit of a rough spot during the early 2000s, when its value plummeted to around half a USD. Since then though, the fortunes of the NZD have turned around and it has regained some of the ground it had lost then.
New Zealand’s geographic location dictates its primary trading partners, which are obviously Australia and a number of Asian countries, like China and Japan. What that means is that its connection to the EUR is indeed a rather feeble one. Traders considering this pair should view it as a measure of how the economies of Southern Asia match up with the economy of the Eurozone.
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