NZDSGD is a currency pair that expresses the relationship between the NZ dollar and the Singapore dollar. The high volatility of the pair makes it hard to trade.
That's a fairly unpopular currency pair at Forex. It's mostly used by experienced traders who know how to make forecasts for the pair's rate. The difference between New Zealand's and Singapore's economies is the reason why it's so hard to analyze the pair. The two currencies do not correlate much, so the rate can move unpredictably. However, with a thorough approach to analysis, traders can make profits trading the NZDSGD in the short term.
To make an analysis, one should consider New Zealand's and Singapore's economic stats and those of the US, too, because the pair is valued against the US dollar. An agricultural sector prevails in the NZ economy. The main export product is sheep wool, so the NZDSGD rate depends directly on global sheep wool prices. In the NZ commodity sector, we can single out gold and wood. A well-developed international tourism sector makes the country's economy depend on the features of the region's climate and weather forecasts. The main trade partners are China, Australia, and the USA.
Singapore's economy is highly developed. The main economic sectors are services, commerce, and industry. The country exports electronic and household equipment and shipbuilding equipment, too. A skillful monetary policy and low levels of corruption allow Singapore to maintain stable prices. Besides, the Singapore economy is attractive to investors.
Risk warning: Trading in FX and CFDs entails high risk of losing capital.
