AUD/NZD is a cross rate of the Australian dollar to the New Zealand dollar that has a high liquidity.
Australia and New Zealand have tight economic interrelation and are situated rather close to each other. That is why the AUD/NZD pair is sought-after by many traders. The most intense trade between these currencies happens during the Asian session.
When trading the AUD/NZD currency pair, a market participant has to take into account lots of economic factors of New Zealand such us GDP level, business activities, trading volume with other countries, discount rate, and other. It is crucial to remember that the New Zealand economy highly depends on exports of wool and its products. Moreover, the country’s economy is influenced by the United States, Australia and Asia-Pacific countries because they are the main partners of New Zealand. So, one should also allow for their economic indicators while trading AUD/NZD.
In order to forecast the price movement of this financial instrument correctly, it is important to consider the influence of the US dollar on each of the currencies of the pair. Therefore, you should keep in mind main US economic indicators that are GDP level, unemployment rate, interest rates and number of new vacancies.