The New Zealand dollar has been on a steady decline over the past few months. The currency dropped to its lowest value against the US dollar in five years and now stands at a six-year low of $1.12 NZD/USD. The currency has already experienced a sharp depreciation against the Canadian dollar.
As a result, the Australian dollar has strengthened significantly against the New Zealand dollar, causing significant changes in the Forex trading scenario. The New Zealand dollar is also under pressure against the euro as well as against the British pound. In short, the strength of the Australian dollar is causing substantial weakness in the New Zealand dollar. In addition to this, there is also a high probability that the New Zealand dollar will experience strong gains against the Canadian dollar in the coming months, with the Canadian dollar also weakening against the NZ dollar.
Since the NZ dollar is affected by a number of different factors, it makes sense to consider these different factors individually to determine what effect they will have on the NZ dollar. One of the major factors is the seasonality of the currency. The Forex market is always open during winter and closed during summer months. In order to determine what effect each factor will have on the NZ dollar, it is important to determine the time of the day when the Forex market is open in the particular country. In the case of New Zealand, there are four main Forex trading areas.
The first area is the Auckland Forex Centre, which is one of the busiest foreign exchange markets in the world. The second area is the North Island and the third area is South Island. The last area is called the South Island and it is located in Wellington, in the southern island of New Zealand.
As the country is located between two major economic centres in Australia, the country experiences quite high levels of economic activity across a number of sectors in the region. This means that there are a large number of exporters in the country. and a large number of importers as well. As a result, this sector has a much stronger impact on the overall Australian dollar.
The second part of the Forex market in the country, which is considered to be affected the most by the seasonal influence of the New Zealand dollar, is the South Island. The South Island is considered to be more rural, with large farms and small towns. This means that the demand for agricultural products is generally high.
The third area is called the Bay of Islands. The fourth area is the West Coast, which is situated in the east coast of the country. The fifth area is the central province. Finally, there are the North Island regions, which are mostly in the centre of the country and are located between the southern two areas. The most populated area in the country is in Auckland, with the other areas situated on the southern tip of the country.
For many years, the Wellington region was considered to be the strongest area of the country when it comes to the strength of the New Zealand dollar. This has changed somewhat recently with the recent strengthening of the Australian dollar. Therefore, if there is a reversal of trend in the NZ dollar, the Wellington region may have to suffer through a period of depreciation that could take several years to be reversed.
The fourth and fifth largest industries in the Wellington region are tourism and hospitality. Due to the fact that there is a large proportion of the population of the Wellington region living in accommodation, a significant part of the total GDP is made up of tourism and hospitality industries. Therefore, a weak tourism industry will also have a significant impact on the New Zealand dollar.
The last part of the Forex market in the Wellington region is the West Coast, which is one of the fastest growing regions in the country. The other areas which experience strong growth are mostly located in the central and eastern areas of the country.
Due to the large number of tourists and workers in the Wellington region, the New Zealand dollar is always in high demand. Due to this, if the Australian dollar weakens, then the New Zealand dollar can be expected to increase in value as the local businesses struggle to fill their orders and provide the workers that the region needs. It is therefore important for investors to understand that when a currency pair is in a bullish trend, the NZ dollar is always one of the best bargains to be had on the markets.