The NZ dollar/Swiss franc rate is designated as NZDCHF. This is a cross rate quoted against the US dollar.
The economies of New Zealand and Switzerland define the specifics of this quotation. The differences between them supplement each other and make the NZDCHF pair a good trading instrument.
New Zealand exports agricultural goods and commodities: wool, dairy, gold, and wood. Tourism and trade play an important role, too.
So, the economies of New Zealand's main trading partners — China, Australia, Japan, and the USA — impact the NZDCHF rate.
Switzerland is mainly famous for its bank system, which makes the Swiss franc one of the most stable global currencies. Global economic crises are the main driver here. During crisis times, Swiss credit institutions accumulate huge bulks of foreign capital as the world considers Switzerland's bank system to be one of the most reliable. So, the Swiss franc gains strength while other global currencies depreciate.
Foreign trade is another crucial factor. Switzerland is a small country that buys resources from other states and exports its goods thanks to a well-developed industrial sector
The NZDCHF cross-rate is a well-balanced trading instrument where the NZD is volatile, and the Swiss franc is stable and predictable.
When analyzing, pay attention to GDP, inflation and unemployment rates, interest rates, and trade balance. The NZDCHF's moves can be easily predicted using graphical and technical analysis tools.
Risk warning: Trading in FX and CFDs entails high risk of losing capital.
