NZD (New Zealand Dollar) - Major characteristicsThis currency behaves similar to the AUD because New Zealand's economy is also trade oriented with much of its exports made up of commodities. The NZD also moves in tandem with commodity prices.
As per estimates from the last BIS triennal survey, in 2007 the NZD accounted for a daily transaction share volume of 1,9% of total Forex transactions, after the Norwegian krone, the Hong Kong Dollar and the Swedish krone.
Along with the Australian Dollar, the NZD has been for many years a traditional vehicle for carry traders, which has made this currency also very sensitive to changes in interest rates. In 2007 the NZD was mainly used to conduct carry trades against the Japanese Yen accounting for a higher volume than the Australian Dollar against the Yen. Fxstreetdotcom.