EURNZD definition

EUR/NZD measures the euro against the New Zealand dollar, showing how many New Zealand dollars one euro buys. It is a cross that links a major reserve currency to a small, commodity-driven economy, and it generally sees less trading volume and wider spreads than the headline pairs. It is not known by any particular nickname.

The euro is the base currency and the New Zealand dollar the quote currency, so a quote of 1.7700 means one euro is worth 1.7700 New Zealand dollars. A rising quote means the euro is outpacing the New Zealand dollar; a falling quote means the reverse. You trade EUR/NZD as a forex CFD, taking a view on the price instead of buying the currency outright: go long for a stronger euro, short for a weaker one. Pips are read at the fourth decimal place, and what you make or lose is the pip move multiplied by your position size.

What moves EUR/NZD most is the divergence between the European Central Bank and the Reserve Bank of New Zealand, which often run their rate cycles out of step. On the New Zealand side, dairy export prices and the health of Chinese demand pull the currency around, so soft global growth or weak commodity auctions can lift the pair even when eurozone news is quiet.