Most currencies have been given nicknames, deriving from a part of their history or a symbolic gesture. If you have the heard the word Kiwi in the news, or during your Forex search it is because it refers to the New Zealand dollar (NZD) it is considered a slang term but is used a lot even in written format when referring to the New Zealand dollar.
The nickname Kiwi came from New Zealand’s national icon, a flightless bird called a kiwi and it is used on one side of the country’s 1 dollar coin.
New Zealand’s currency exchange rate is very related to the price demand of the country’s agricultural and forestry products.
New Zealand’s trade balance is considered an important economic indicators, which is released on a monthly basis in Wellington, by Statistics New Zealand. The piece of data is calculated in millions of New Zealand dollars, and it illustrates the difference between the net value of exports and the net value of imports in the country for each month.
When value exports are higher than value imports, there is a creation of a trade surplus, while when the value of imports is higher than the value of exports a trade deficit is created.
This monthly release, effects potential movements, and raises speculations about the movement of the kiwi. Other news releases which affect the kiwi are climate related news, climate conditions in New Zealand have a great impact on the country’s currency, things like heavy rains, droughts, floods, and bad weather conditions hard agricultural products on which the country heavily relies and they will inevitably effect the currency itself, as well as exports.
A decrease in exports would widen current deficits and cause a slide in the Kiwi. Good weather conditions on the other hand increase agricultural products, and increase New Zealand exports, which would improve speculation, the economy and of course the kiwi.