It might not rank as one of the largest countries in the world in terms of size, but New Zealand and its dollar currency holds a prominent position on the forex market. The NZD to USD pair is one of the Majors and is also known as the “Kiwi” after the Kiwi bird depicted on the NZ $1 coin.
New Zealand has many natural resources and is a major global exporter of agricultural produce – most notably whole milk powder, but also fruit and meat. As a result, the New Zealand dollar is seen as a commodity currency and its risk factors are not unlike that of the AUD/USD pair.
In addition to its exposure to the global agricultural and commodities market, traditionally high interest rates in New Zealand has meant NZD to USD has also been popular with carry traders.