Introduction to NZD/JPY Trading
NZD Volatility trade-offs
What Moves the NZD?
Economic growth: Positive GDP growth reflects New Zealand’s strong economic standing, boosting demand for its currency. Negative GDP growth underscores the country’s poor economic performance, damping demand for the NZD.
Export increase prominent peremptory request for the goods from New Zealand also results in a higher GDP, which then supercharges the New Zealand Dollar. Conversely, lower exports add less to GDP, allowing the value of the NZD to decline.
Rising commodity prices: Rising commodity prices are causing New Zealand’s export monetary value to go up, driving its GDP higher. In contrast, falling commodity prices cause the export of monetary value to fall, dragging down its GDP.
Important Economic Indicators for the NZD
A trade’s cost is not the same all trading day. It varies, based on market volatility. Therefore, you need to know when the cost is high and when it is low.
The market value of NZD/JPY is a value of JPY that is required to buy one NZD. It is quoted as 1 NZD per X JPY. For example, if the CMP (current market price) of NZDJPY is 72.657, then it takes 72.657 yen to buy one New Zealand dollar.
In order to predict the future movement of the NZD/JPY pair, the tools of technical analysis should be used instead and the fundamental factors should be assessed in conjunction.