Major pair
NZD/USD through the Lens: the kiwi, thin hours and the first open
NZD/USD is the price of one New Zealand dollar in US dollars, with the New Zealand dollar as the base currency. Nicknamed the kiwi, it is among the less traded traditional majors, linked to agricultural exports and risk appetite and often moving alongside AUD/USD. It trades in the earliest hours of the forex day, which shapes its liquidity.
Pair facts
| Base currency | NZD (New Zealand dollar) |
|---|---|
| Quote currency | USD (US dollar) |
| Type | Major pair |
| One pip | 0.0001 |
| Usual quote | 5 decimals (the last digit is a tenth of a pip) |
| Pip value, standard lot (100,000 NZD) | 10 USD |
| Pip value, mini lot (10,000 NZD) | 1 USD |
| Pip value, micro lot (1,000 NZD) | 0.1 USD |
Pip values are exact in the quote currency (USD). In another account currency they change with the exchange rate. No prices, no levels, no forecasts on this page: it is a description of the pair, not a view on it.
What NZD/USD is
NZD/USD pairs the New Zealand dollar, managed by the Reserve Bank of New Zealand, with the US dollar, managed by the Federal Reserve. The nickname kiwi comes from the flightless bird that is the national symbol and appears on the one dollar coin. The pair is counted among the seven traditional majors, though it is among the least traded of them.
New Zealand is a small, open economy that exports dairy, meat and other farm goods, much of it to Asia. The currency tends to respond to prices for those exports, to Chinese demand, to the decisions of its own central bank and to the general mood of markets. It often moves in the same direction as the Australian dollar, since the two countries share trade links and many of the same influences.
When NZD/USD moves
Wellington is the first financial centre to open each trading day, shortly after the forex week begins on Sunday afternoon New York time. New Zealand data arrives in those early hours, when few other markets are open and liquidity is thin. The pair is then usually quiet through the European morning and active again in New York hours.
On ForexLens the Asia kill zone of 20:00 to 00:00 New York time catches part of the local day. The London window of 02:00 to 05:00 is often slow for the kiwi, and the New York window of 07:00 to 10:00 brings the dollar side to life.
How NZD/USD tends to behave
NZD/USD usually moves a similar or slightly smaller number of pips in a day than AUD/USD, and its spread is usually a little wider than on the larger majors because fewer participants trade it. In thin hours a modest order can move it more than the same order would move EUR/USD.
It frequently travels with AUD/USD, so holding both in the same direction is close to holding one larger position. The two part ways when the two central banks or the two export baskets diverge.
How smart money concepts are applied to NZD/USD
Thin early hours matter for the SMC reading. A spike through a level soon after the Wellington open may be a liquidity sweep in the textbook sense or simply a thin market, and the chart alone cannot say which; that question is explored on the does SMC work page. SMC traders mark the previous day extremes and the Asia range as liquidity and wait for a candle close before judging.
In New York hours the reading looks for a sweep of an Asia or London extreme, a change of character, and then the next pool as the draw on liquidity. A slightly wider spread is a reason for a little more patience and a little less size. Mark the pools yourself in Liquidity Map.
NZD/USD questions
Why is NZD/USD called the kiwi?
The kiwi is a flightless bird native to New Zealand and a national symbol. It appears on the New Zealand one dollar coin, and both the coin and the currency picked up the name. On dealing desks the nickname is used for the New Zealand dollar and for its pair against the US dollar.
What is the pip value of NZD/USD?
A pip on NZD/USD is the fourth decimal place, and the quote currency is the US dollar. One pip is worth 10 US dollars on a standard lot of 100,000 New Zealand dollars, 1 dollar on a mini lot and 10 cents on a micro lot. Accounts in other currencies convert that at the current rate.
Do NZD/USD and AUD/USD move together?
Often. Australia and New Zealand trade heavily with each other and with Asia, and both currencies respond to commodity demand and market mood, so the two pairs frequently move in the same direction. They separate when the two central banks take different paths or when dairy and metals prices diverge. It is a tendency, not a rule.
When is NZD/USD most active?
NZD/USD can move in the first hours of the trading day, when New Zealand data is released and few other centres are open, and it is usually most active in the New York morning when United States data arrives. The European morning is often quiet for it. This describes activity, not a recommendation.
Other pairs
Practise on simulated charts
ForexLens games use simulated prices on several pairs. Start with structure, then liquidity and sessions.