NZD/USD: New Zealand dollar / US dollar

NZD/USD is the price of one New Zealand dollar in US dollars. At 0.6000, one New Zealand dollar buys 0.60 US dollars; when the pair rises, the kiwi is strengthening against the US dollar, and when it falls, the US dollar is gaining. The currency is nicknamed the "kiwi" after New Zealand's national bird, which appears on its one-dollar coin, and traders use the same name for the pair.

It is usually listed as the seventh of the major pairs, but it is by far the smallest of them by turnover. That brings particular characteristics: thinner liquidity, a heavier dependence on a few export sectors and global risk appetite, and, for EU retail clients, a lower leverage cap than the other dollar majors.

What NZD/USD is and who trades it

In the BIS Triennial Central Bank Survey of April 2025, NZD/USD accounted for a little over 1% of global FX turnover, roughly 120 billion dollars a day. That is a large market in absolute terms but a fraction of EUR/USD, which accounts for about a fifth of all turnover.

Participants include:

• New Zealand exporters, especially in dairy, meat, forestry, fruit and wine, converting foreign earnings into New Zealand dollars.
• Importers buying fuel, machinery and consumer goods.
• Foreign investors in New Zealand government bonds, which have at times offered higher yields than those of many other developed economies.
• Global funds using the kiwi, often alongside the Australian dollar, to express views on risk appetite and interest rates.
• Retail traders, attracted by the pair's clear themes and its activity early in the trading week.

For the wider picture, see how the forex market works.

The two economies and central banks behind it

New Zealand and the Reserve Bank of New Zealand

New Zealand is a small, open economy with a large agricultural export sector. Dairy is its biggest export earner, and the country is one of the world's largest dairy exporters. Tourism and international education are important service exports. China, Australia and the United States are among its main trading partners.

The New Zealand dollar was floated in March 1985. A few years later the Reserve Bank of New Zealand Act 1989, which took effect in February 1990, made the RBNZ the first central bank to adopt a formal inflation target, a framework that central banks around the world went on to copy.

Today the Reserve Bank of New Zealand (RBNZ) targets inflation of 1–3%, focusing on the 2% midpoint, and its Monetary Policy Committee sets the official cash rate (OCR). It makes seven scheduled decisions a year, announced at 14:00 New Zealand time, which is in the small hours of the UK morning, between about 01:00 and 03:00 depending on the time of year. Four of them come with a full Monetary Policy Statement that includes a projected path for the OCR, which the market watches closely.

Most major New Zealand data, including quarterly CPI, GDP and labour market figures, are published by Stats NZ at 10:45 New Zealand time, which is the late evening of the previous day in the UK.

The United States and the Federal Reserve

On the other side are the Federal Reserve and US data. Fed decisions arrive at 19:00 UK time for most of the year, and payrolls and CPI at 13:30. Because the US is so much larger, the dollar side often drives day-to-day moves. See central banks and interest rates.

What typically moves NZD/USD

Rate expectations. The gap between expected New Zealand and US rates is the pair's main medium-term driver. Because the RBNZ publishes its own projected rate path, a change in that projection can move the kiwi as much as the decision itself. See interest rate differential and hawkish versus dovish signals.

Dairy prices. The Global Dairy Trade (GDT) auction, held every two weeks, gives a regular reading on international dairy prices. Large moves in the GDT index have at times moved the kiwi, though usually less than a central-bank surprise.

Risk sentiment. The kiwi is often described, like the Aussie, as a risk-sensitive currency: it has tended to gain in calm, confident markets and fall in sharp sell-offs. Its historically higher yields have also made it a carry trade favourite in some periods, and carry positions tend to be cut quickly when markets turn.

Australia and China. Chinese demand and the Australian economy both matter to New Zealand. AUD/USD and NZD/USD have often moved together for this reason.

Data surprises. New Zealand CPI, employment and GDP, and the major US releases, move the pair when they diverge from consensus. See how economic data moves forex.

Character and behaviour by session

Times are UK time. New Zealand observes daylight saving from late September to early April and the UK from late March to late October, so the gap between Wellington and London swings between 11 and 13 hours. The market hours tool does the conversion for you.

• Wellington and Sydney (from about 21:00–22:00 on Sunday, and each evening): New Zealand is the first major market to open each week. Monday morning in Wellington is still Sunday evening in the UK, which is why the forex week begins on Sunday night. Liquidity in this window is thin and spreads are often wide, especially at the weekly open.
• Tokyo (about 00:00–07:00): activity continues, with New Zealand and Australian news and Chinese data.
• London (from about 07:00): the kiwi is less active in the European morning than the euro or pound.
• London/New York overlap (about 13:00–17:00): the most liquid window for the dollar side, with US data at 13:30 (12:30 during the weeks in spring and autumn when UK and US clocks are out of step).

Because the market is smaller, NZD/USD can be more prone to sharp moves in quiet hours, and its daily ranges in proportion to price have generally been comparable to or larger than those of the European majors. Read gap risk and weekend risk before holding positions over the weekend open.

Leverage and margin: why 20:1, not 30:1

ESMA's retail leverage rules set a 30:1 cap only for pairs made up of two of the US dollar, euro, yen, pound, Canadian dollar and Swiss franc. The New Zealand dollar is not on that list, so NZD/USD falls into the 20:1 category for retail clients in the EU, which means a margin requirement of 5% rather than 3.33%. The UK's FCA uses the same structure.

Example (illustrative numbers). One standard lot of NZD/USD at 0.6000 is worth 60,000 US dollars. At 20:1, the margin is 5%, or 3,000 dollars. At 30:1 it would have been 2,000 dollars. See ESMA leverage limits and negative balance protection and the margin calculator.

Costs of trading NZD/USD

Because NZD/USD is the least traded of the seven dollar majors, its spreads are usually the widest of the group at most brokers, though still far tighter than on exotic pairs. Spreads widen particularly at the Sunday-evening open, around the daily rollover, around RBNZ decisions and during New Zealand public holidays. Check typical spreads rather than advertised minimums; see why spreads widen and spreads and commissions.

Swaps reflect the difference between New Zealand and US interest rates. In periods when New Zealand rates have been above US rates, long NZD/USD positions have tended to earn a small credit or pay less, and short positions to pay more, after the broker's mark-up. When the gap reverses, so does the pattern. See swap and overnight financing.

Pip value: a worked example

A pip on NZD/USD is 0.0001. With the US dollar as the quote currency:

• 1 standard lot (100,000 New Zealand dollars): 10 US dollars per pip
• 1 mini lot (10,000 New Zealand dollars): 1 US dollar per pip
• 1 micro lot (1,000 New Zealand dollars): 0.10 US dollars per pip

Example (illustrative numbers). Your account is 2,000 pounds and you plan to risk 1%, or 20 pounds, on an NZD/USD trade with a 30-pip stop. At a GBP/USD rate of 1.3000, 20 pounds is 26 dollars. Divided by 30 pips, that is about 0.87 dollars per pip, or roughly 0.08 lots (8,000 New Zealand dollars). The margin at 20:1 on 8,000 New Zealand dollars at 0.6000 (4,800 US dollars) is 240 dollars, about 185 pounds.

Use the pip value calculator and position size calculator for your own account currency, and see position sizing for the method.

Correlations with other pairs

• AUD/USD has historically had one of the strongest positive correlations of any two major pairs with NZD/USD. See the AUD/USD profile.
• AUD/JPY and the yen crosses reflect the same risk-on, risk-off swings. See AUD/JPY.
• EUR/USD and GBP/USD share the dollar side and often move in the same direction as NZD/USD on broad dollar days.
• USD/CAD tends to move inversely when the US dollar is the main driver.

Long AUD/USD and long NZD/USD together are, much of the time, one larger trade. Correlations change, though, and the two can diverge sharply when the RBA and RBNZ take different paths. See currency correlation.

Notable history

• March 1985: the float. New Zealand floated its currency as part of a wider programme of economic reform, letting the market set the exchange rate.
• 1989–1990: inflation targeting. The Reserve Bank of New Zealand Act 1989 gave the RBNZ a single objective of price stability and, from February 1990, a formal inflation target, the first in the world. Inflation targeting is now standard practice among major central banks.
• 2008: the financial crisis. As risk appetite collapsed and carry trades unwound in the second half of 2008, the kiwi fell sharply against the US dollar, along with the Australian dollar.
• Dairy price swings. Periods of falling international dairy prices, such as the slump in 2014–2015, have weighed on the kiwi and on New Zealand's terms of trade, illustrating the economy's reliance on a single large export sector.

Trading NZD/USD as a beginner

• Plan for 20:1. The margin is higher than on EUR/USD; size your position from your stop distance and risk limit, not from what the margin allows.
• Avoid the Sunday-night open. Spreads are often at their widest and prices can gap from Friday's close.
• Know when New Zealand news lands. RBNZ decisions and key data arrive in UK night-time hours. Holding through them is a deliberate risk, not a default.
• Don't double up with AUD/USD. The two are often so closely linked that holding both may double your exposure to one idea.
• Respect leverage and the odds. Most retail CFD accounts lose money, and leverage magnifies losses. See leverage and margin and why most retail CFD traders lose.

Frequently asked questions

Why is the New Zealand dollar called the kiwi?

The kiwi bird is New Zealand's national symbol and appears on the country's one-dollar coin. The name is used for the currency and for the NZD/USD pair.

Why is NZD/USD leverage 20:1 in the EU?

Under ESMA rules, only pairs formed from the US dollar, euro, yen, pound, Canadian dollar and Swiss franc get the 30:1 cap. The New Zealand dollar is not on the list, so NZD/USD is capped at 20:1 for retail clients, even though brokers usually describe it as a major.

Do dairy prices really move the kiwi?

Sometimes. Dairy is New Zealand's largest export sector, so sustained changes in dairy prices affect export earnings and the economy. Individual Global Dairy Trade auctions occasionally move the currency, but interest-rate expectations and global risk sentiment usually matter more.

Why does NZD/USD move like AUD/USD?

The two economies are closely linked, both export commodities, both sell heavily to China and both currencies are sensitive to global risk appetite. The correlation is often strong but not constant, especially when the two central banks move differently.

When does the RBNZ announce interest rates in UK time?

At 14:00 New Zealand time, which falls between about 01:00 and 03:00 UK time depending on the season. The RBNZ makes seven scheduled decisions a year; check its website for the dates.