Ethereum to New Zealand dollar: Trade ETH to NZD pair and track its real-time price
The Ethereum to New Zealand dollar pair features ETH as the base along with NZD, the official currency of New Zealand since 1967, as the counter currency. The value of the pair can be interpreted as how many NZ dollars can be purchased with one ETH or how many NZ dollars it takes to purchase one ETH.
Even though New Zealand’s economy is not at the top of the list of the largest economies in the globe, its currency is among the 10 most traded, as the country relies on its exports to grow its economy.
The most important commercial partners of New Zealand include highly-developed economies such as Australia, the European Union, China, the US, and Japan, which generates stability for its finances as the demand of these countries tends to go up over time due to the success of their economic systems.
The ETH/NZD pair can attract significant interest from traders who understand the fundamentals that push international trade, as the value of the NZ dollar is highly correlated with the growth of this particular variable.
On the other hand, for those who have spent time following the cryptocurrency market, there’s also room to speculate about future price movements of ETH based on the degree of adoption of its blockchain technology and the demand for the token as a payment method and financial asset.
Traders can profit from trading ETH/NZD by anticipating potential shifts in these drivers that could ultimately affect the value of ETH to NZD. This can be achieved by taking long or short positions on the pair by using Contracts for Difference (CFDs).
Ethereum’s popularity has been boosted by the possibility that its underlying blockchain technology may be adopted by corporations seeking to develop blockchain-based applications.
The launch of the Enterprise Ethereum Alliance (EEA) was a step forward in this direction, as the organisation reported that more than 180 companies are already active members of the initiative.
If further applications are developed by using Ethereum’s blockchain, the demand for ETH will be increased as the network requires that transaction fees involved in using Ethereum’s blockchain are paid in ETH. As a result, the price of this token could go up significantly.
Meanwhile, New Zealand’s service sector accounts for more than 60 per cent of the country’s GDP, while it is also fueled by exports of dairy products, meat, seafood, and certain varieties of fruits.
Since 1985 the value of the NZ dollar has been floating freely after removing a previous peg to the US dollar. The value of the currency has been losing ground against major currencies including the US dollar as the country’s GDP growth has stalled under one per cent.
The recent coronavirus outbreak has further accelerated this devaluation and traders may profit from this by taking a long position on the ETH/NZD.
Traders can benefit from ETH/NZD price swings by taking long or short positions on this crypto-to-fiat pair using Capital.com’s proprietary trading platform which features a real-time price chart and changes a zero per cent commission on trades.