Trading NZD/SGD
NZD/SGD is an exotic forex pair with interesting features that make it a noteworthy trading vehicle. The New Zealand dollar, also known as the kiwi, is the 10th most traded currency in the forex market, while the Singapore dollar is considered one of the most stable currencies in the world. The review breaks down the advantages and disadvantages of day trading NZD/SGD, its history, investing tips, a live chart, and more.
NZD/SGD Trading Brokers
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1
FOREX.comActive Trader Program With A 15% Reduction In Costs
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$1000.01 Lots1:50NFA, CFTCForex, Stocks, Futures, Futures OptionsMT4, MT5, TradingView, eSignal, AutoChartist, TradingCentralWire Transfer, Credit Card, Debit Card, Visa, Mastercard, Skrill, Neteller, ACH TransferUSD, EUR, GBP, CAD, AUD, JPY, CHF, PLN -
2
NinjaTrader
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$00.01 Lots1:50NFA, CFTCForex, Stocks, Options, Commodities, Futures, CryptoNinjaTrader Desktop, Web & Mobile, eSignalACH Transfer, Debit Card, Wire TransferUSD -
3
OANDA USCFDs are not available to residents in the United States.
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$00.01 Lots1:50NFA, CFTCForex, Crypto with Paxos (Cryptocurrencies are offered through Paxos. Paxos is a separate legal entity from OANDA)OANDA Trade, MT4, TradingView, AutoChartistWire Transfer, Visa, Mastercard, Debit Card, ACH TransferUSD, EUR, GBP, CAD, AUD, JPY, CHF, HKD, SGD -
4
IGForex trading involves risk. Losses can exceed deposits.
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$00.01 Lots1:30 (Retail), 1:250 (Pro)FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOBCFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread BettingWeb, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentralPayPal, Wire Transfer, Mastercard, Credit Card, Visa, Debit CardUSD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD -
5
Interactive Brokers
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$0$1001:50FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMAStocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, CryptocurrenciesTrader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentralCheque, ACH Transfer, Wire Transfer, Automated Customer Account Transfer Service, TransferWise, Debit CardUSD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF -
6
Videforex20% to 200% Deposit Bonus
$250$0.011:500Binary Options, CFDs, Forex, Indices, Commodities, CryptoTradingViewSkrill, Perfect Money, Bitcoin Payments, Neteller, Credit Card, Visa, Mastercard, Ethereum PaymentsUSD, EUR, GBP, AUD, RUB -
7
World Forex100% Deposit Bonus
$10.01 Lots1:1000SVGFSAForex, CFD Stocks, Metals, Energies, Cryptos, Digital ContractsMT4, MT5Wire Transfer, Debit Card, Credit Card, Visa, Mastercard, Google Wallet, Apple Pay, Perfect Money, Bitcoin Payments, VoletUSD, EUR, RUB -
8
Sage FX$1,500 trading competition
$100.01 Lots1:500PendingForex, indices, cryptosTradeLockerCredit Card, Visa, Mastercard, Bitcoin Payments, Ethereum PaymentsUSD, EUR, GBP, CAD, AUD -
9
Coinexx100% Deposit Welcome Bonus
0.001 BTC0.01 Lots1:500Forex, Commodities, Indices, CryptocurrenciesMT4, MT5Bitcoin Payments, Ethereum PaymentsUSD -
10
RedMars
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
€2500.01 Lots1:30 (Retail), 1:500 (Pro)CySECCFDs, Forex, Stocks, Indices, Commodities, CryptosMT5Credit Card, Wire Transfer, Debit Card, Sticpay, FasaPay, Bitcoin Payments, Trustly, PayPal, Skrill, Neteller, Klarna, Mastercard, VisaUSD, EUR
Here is a short overview of each broker's pros and cons
- FOREX.com - FOREX.com continues to uphold its stature as a premier FX broker, offering over 80 currency pairs and boasting some of the most competitive fees in the industry. With EUR/USD spreads dipping as low as 0.0 and $5 commission per $100k, it stands out. Moreover, its SMART Signals help to identify price behaviors across numerous major currency markets.
- NinjaTrader - NinjaTraders supports the trading of popular currencies including the EUR/USD. The software also offers advanced features to streamline the trading experience, including complex order types like market if touched (MIT) and one cancels other (OCO).
- OANDA US - OANDA offers a diverse selection of 68 currency pairs, more than many alternatives. The broker’s in-house platform offers superb day trading capabilities via powerful TradingView charts, including 65+ technical indicators and 11 customizable chart types.
- IG - IG offers an above-average suite of 80+ currency pairs on its proprietary web platform, mobile app or MetaTrader 4, with more advanced charts and forex analysis tools available on the ProRealTime software. Forex spreads are competitive based on tests, starting from 0.1 pips on majors like the EUR/USD.
- Interactive Brokers - IBKR presents an extensive range of over 100 major, minor, and exotic forex pairs, surpassing the offerings of nearly all leading alternatives, though not CMC Markets. Forex trading occurs over multiple platforms and boasts institutional-grade spreads starting from 0.1 pips and 20 complex order types, including brackets, scale, and one-cancels-all (OCA) orders.
- Videforex - Trade 35 major, minor and exotic forex pairs through CFDs with floating spreads from 0.1 pips. Alternatively, binary options allow you to speculate on rising and falling prices with a fixed stake and payout.
- World Forex - World Forex offers CFD and digital contract trading on 53 forex pairs, including EUR/USD and GBP/EUR. High leverage is available for CFDs, which can be accessed with competitive spreads on certain account types.
- Sage FX - Trade 7 major, 21 minor and 29 exotic forex pairs with high leverage and a choice between STP or ECN accounts. Support is available around the clock and the TradeLocker forex software is provided.
- Coinexx - Trade 70 major, minor and exotic forex pairs with ultra-low ECN spreads and fast execution via the MT4 or MT5 platforms. There are also zero SL/TP limits and automated forex trading is well catered for.
- RedMars - RedMars strongest investment category is forex with more than 50 currency pairs, from majors to minors and exotics. Spreads start from 0.0 pips, catering to active currency traders, and leverage can reach 1:500. However, there are no forex heatmaps or research tools to support aspiring forex traders.
Trading NZD/SGD Comparison
| Broker | Forex Assets | EUR/USD Spread | Forex App Rating | Minimum Deposit | Regulator |
|---|---|---|---|---|---|
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80+ | 1.2 | / 5 | $100 | NFA, CFTC |
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50+ | 1.3 | / 5 | $0 | NFA, CFTC |
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65+ | 1.6 | / 5 | $0 | NFA, CFTC |
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80+ | 0.8 | / 5 | $0 | FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB |
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100+ | 0.08-0.20 bps x trade value | / 5 | $0 | FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA |
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35 | Floating from 0.1 pips | / 5 | $250 | - |
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53 | From 0.6 | - | $1 | SVGFSA |
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57 | 0.9 | - | $10 | Pending |
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60+ | From 0.0 pips | - | 0.001 BTC | - |
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50+ | 0.7 | - | €250 | CySEC |
FOREX.com
"FOREX.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."
Christian Harris, Reviewer
FOREX.com Quick Facts
| Bonus Offer | Active Trader Program With A 15% Reduction In Costs |
|---|---|
| GBPUSD Spread | 1.3 |
| EURUSD Spread | 1.2 |
| EURGBP Spread | 1.4 |
| Total Assets | 80+ |
| Leverage | 1:50 |
| Platforms | MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral |
| Account Currencies | USD, EUR, GBP, CAD, AUD, JPY, CHF, PLN |
Pros
- FOREX.com offers industry-leading forex pricing starting from 0.0 pips, alongside competitive cashback rebates of up to 15% for serious day traders.
- The in-house Web Trader continues to shine as one of the best-designed platforms for aspiring day traders with a slick design and over 80 technical indicators for market analysis.
- Alongside a choice of leading platforms, FOREX.com offers a superb suite of supplementary tools including Trading Central research, SMART Signals pattern scanner, trading signals, and strategy builders.
Cons
- Despite increasing its range of instruments, FOREX.com's product portfolio is still limited to forex and CFDs, so there are no options to invest in real stocks, real ETFs or real cryptocurrencies.
- Demo accounts are frustratingly time-limited to 90 days, which doesn’t give you enough time to test day trading strategies effectively.
- FOREX.com's MT4 platform offers approximately 600 instruments, significantly fewer than the over 5,500 available on its non-MetaTrader platforms.
NinjaTrader
"NinjaTrader continues to meet the demands of active futures traders looking for low fees and premium analysis tools. The platform hosts top-rate charting features including hundreds of indicators and 10+ chart types."
Tobias Robinson, Reviewer
NinjaTrader Quick Facts
| GBPUSD Spread | 1.6 |
|---|---|
| EURUSD Spread | 1.3 |
| EURGBP Spread | 1.6 |
| Total Assets | 50+ |
| Leverage | 1:50 |
| Platforms | NinjaTrader Desktop, Web & Mobile, eSignal |
| Account Currencies | USD |
Pros
- NinjaTrader is a widely respected and award-winning futures broker and is heavily authorized by the NFA and CFTC
- You can get thousands of add-ons and applications from developers in 150+ countries
- Traders can get free platform access and trade simulation capabilities in the unlimited demo
Cons
- Non forex and futures trading requires signing up with partner brokers
- There is a withdrawal fee on some funding methods
- The premium platform tools come with an extra charge
OANDA US
"OANDA remains an excellent broker for US day traders seeking a user-friendly platform with premium analysis tools and a straightforward joining process. OANDA is also heavily regulated with a very high trust score."
OANDA US Quick Facts
| GBPUSD Spread | 3.4 |
|---|---|
| EURUSD Spread | 1.6 |
| EURGBP Spread | 1.7 |
| Total Assets | 65+ |
| Leverage | 1:50 |
| Platforms | OANDA Trade, MT4, TradingView, AutoChartist |
| Account Currencies | USD, EUR, GBP, CAD, AUD, JPY, CHF, HKD, SGD |
Pros
- OANDA is a reliable, trustworthy and secure brand with authorization from tier-one regulators including the CFTC
- The broker's API facilitates access to 25 years of deep historical data and rates from 200+ currencies
- The proprietary OANDA web platform continues to deliver a highly competitive charting environment, including 65+ technical indicators powered by TradingView
Cons
- The range of day trading markets is limited to forex and cryptos only
- There's only a small range of payment methods available, with no e-wallets supported
- It's a shame that customer support is not available on weekends
IG
"IG continues to provide a comprehensive package with an intuitive web platform and best-in-class education for beginners, plus advanced charting tools, real-time data, and fast execution speeds for experienced day traders."
IG Quick Facts
| GBPUSD Spread | 0.9 |
|---|---|
| EURUSD Spread | 0.8 |
| EURGBP Spread | 0.9 |
| Total Assets | 80+ |
| Leverage | 1:30 (Retail), 1:250 (Pro) |
| Platforms | Web, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentral |
| Account Currencies | USD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD |
Pros
- As a well-established broker, IG operates under strict regulatory guidelines in multiple jurisdictions, maintaining a high level of trust
- IG is amongst the best in terms of its range of instruments, which includes stocks, forex, indices, commodities, and cryptocurrencies, providing ample diversification opportunities
- The proprietary web-based platform continues to caters to traders of all levels, with advanced charting tools and real-time market data useful for day trading
Cons
- Stock and CFD spreads still trail the cheapest brokers like CMC Markets based on tests
- IG has discontinued its swap-free account, reducing its appeal to Islamic traders
- IG applies an inactivity fee of $12 per month after 2 years, deterring casual investors
Interactive Brokers
"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts, notably through the new IBKR Desktop application. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."
Interactive Brokers Quick Facts
| GBPUSD Spread | 0.08-0.20 bps x trade value |
|---|---|
| EURUSD Spread | 0.08-0.20 bps x trade value |
| EURGBP Spread | 0.08-0.20 bps x trade value |
| Total Assets | 100+ |
| Leverage | 1:50 |
| Platforms | Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral |
| Account Currencies | USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF |
Pros
- IBKR is one of the most respected and trusted brokerages and is regulated by top-tier authorities, so you can have confidence in the integrity and security of your trading account.
- The TWS platform has clearly been built for intermediate and advanced traders and comes with over 100 order types and a reliable real-time market data feed that rarely goes offline.
- While primarily geared towards experienced traders, IBKR has made moves to broaden its appeal in recent years, reducing its minimum deposit from $10,000 to $0.
Cons
- Support can be slow and frustrating based on tests, so you might find it challenging to reach customer service representatives promptly or encounter delays in resolving issues.
- IBKR provides a wide range of research tools, but their distribution across trading platforms and the web-based 'Account Management' page lacks consistency, leading to a confusing user experience.
- TWS’s learning curve is steep, and beginners may find it challenging to navigate the platform and understand all the features. Plus500's web platform is much better suited to new traders.
Videforex
"Newer traders will find a lot to enjoy about trading binary options on Videforex's easy-to-use proprietary platform, as well as the broker's copy trading solution. Payouts also remain higher than most alternatives climbing to 98%."
Videforex Quick Facts
| Bonus Offer | 20% to 200% Deposit Bonus |
|---|---|
| GBPUSD Spread | Floating from 0.1 pips |
| EURUSD Spread | Floating from 0.1 pips |
| EURGBP Spread | Floating from 0.1 pips |
| Total Assets | 35 |
| Leverage | 1:500 |
| Platforms | TradingView |
| Account Currencies | USD, EUR, GBP, AUD, RUB |
Pros
- The support times are fast and reliable based on tests - few brokers offer 24/7 multi-lingual video support
- Videforex allows you to enter positions with just ¢0.01
- You can easily mirror the trades of experienced investors with low fees
Cons
- US clients aren’t accepted due to legal restrictions
- The broker isn’t overseen by a trusted regulatory agency
- No MetaTrader 4 integration
World Forex
"World Forex provides both highly leveraged CFDs and digital contracts, making this a good broker for clients who want flexible and rewarding ways to trade. The copy trading service will also appeal to newer traders."
World Forex Quick Facts
| Bonus Offer | 100% Deposit Bonus |
|---|---|
| GBPUSD Spread | From 0.6 |
| EURUSD Spread | From 0.6 |
| EURGBP Spread | From 0.6 |
| Total Assets | 53 |
| Leverage | 1:1000 |
| Platforms | MT4, MT5 |
| Account Currencies | USD, EUR, RUB |
Pros
- MT4, MT5 and a proprietary trading terminal
- Copy trading solution
- STP/ECN technology
Cons
- Withdrawal fees apply
- Weak regulation
- No negative balance protection
Sage FX
"Sage FX will suit forex traders looking for high leverage and ECN spreads. The broker's prop trading service will also appeal to users looking for funded accounts with up to $200K available."
Sage FX Quick Facts
| Bonus Offer | $1,500 trading competition |
|---|---|
| GBPUSD Spread | 0.9 |
| EURUSD Spread | 0.9 |
| EURGBP Spread | 2.5 |
| Total Assets | 57 |
| Leverage | 1:500 |
| Platforms | TradeLocker |
| Account Currencies | USD, EUR, GBP, CAD, AUD |
Pros
- Bonus offers and trading competitions
- Prop trading accounts with multiple funding tiers
- Low starting deposit from $10
Cons
- Not regulated by any reputable body
- Relatively narrow range of asset classes
- Lacks educational resources and other extra features
Coinexx
"Traders seeking highly leveraged CFDs with a broker that uses crypto as a base account currency will find a good match in Coinexx. The ECN model also offer tight spreads from 0 pips. On the downside, traders should note the weak regulatory oversight."
Coinexx Quick Facts
| Bonus Offer | 100% Deposit Welcome Bonus |
|---|---|
| GBPUSD Spread | From 0.0 pips |
| EURUSD Spread | From 0.0 pips |
| EURGBP Spread | From 0.0 pips |
| Total Assets | 60+ |
| Leverage | 1:500 |
| Platforms | MT4, MT5 |
| Account Currencies | USD |
Pros
- Demo account available to prospective traders
- Very high leverage up to 1:500
- 100% deposit bonus for new clients
Cons
- Limited educational materials for new traders
- No regulatory oversight reduces safety
- No fiat account funding options - crypto only
RedMars
"RedMars is the best fit for experienced day traders familiar with the MetaTrader 5 platform and based in the EU, where the broker is authorized by the CySEC. However, the threadbare education and research tools make it unsuitable for beginners."
RedMars Quick Facts
| GBPUSD Spread | 0.7 |
|---|---|
| EURUSD Spread | 0.7 |
| EURGBP Spread | 1.1 |
| Total Assets | 50+ |
| Leverage | 1:30 (Retail), 1:500 (Pro) |
| Platforms | MT5 |
| Account Currencies | USD, EUR |
Pros
- Clients in the EU, in particular, can trade with peace of mind knowing RedMars is authorized by the CySEC with up to €20K compensation available through the ICF in the event of bankruptcy
- RedMars offers one of the best platforms for day trading, MT5, hosting 21 timeframes, dozens of analytical tools, flexible templates and algo trading
- The broker supports a range of flexible payment methods, including wire transfers, credit cards, e-wallets, and notably cryptocurrencies
Cons
- The no-frills trading environment offers little beyond the basics, with no Islamic account, PAMM account or copy trading.
- RedMars falls short for newer traders, with little in the way of education, no beginner-friendly platform, a steep minimum deposit, and inadequate support during testing
- With just 300 instruments, RedMars offers a narrow trading environment, particularly compared to category leaders like BlackBull Markets which offers 26,000 assets
Chart
Pros Of Trading NZD/SGD
- Accessibility – While the SGD is regulated by the Monetary Policy of Singapore, restrictions are limited versus currencies in neighbouring countries such as the Chinese yuan. In fact, the SGD is one of the most accessible Asian currencies available on the forex market.
- High-interest rates – The NZD is known to offer high-interest rates and is considered a carry trade currency. Its interest rate differentials after the financial crash in 2008 offer good profit potential.
- Volatility – The Singapore dollar is stable and has seen long-term growth. On the other hand, the New Zealand dollar is more volatile, considered a commodity currency with its value tied to agricultural exports. This means trading NZD against SGD can offer interesting investment opportunities.
- Resources – When trading NZD/SGD, investors have access to a range of tools, including historical graphs and live candlestick charts which make forecasts and trends easier to predict.
Risks Of Trading NZD/SGD
- Volatility – Whilst volatility can help with profits, price swings can also lead to losses. Traders should always employ risk management strategies to limit risk exposure.
- Reduced leverage – Forex trading platforms tend to offer lower leverage on exotic pairs such as the NZD/SGD compared to more established majors like the EUR/USD.
- Low liquidity – Exotic pairs generally provide lower liquidity than majors, which can result in wider spreads and increased costs.
Influences On NZD/SGD Movement
Many factors can affect the NZD into SGD market sentiment and spot rates:
- Central bank policies – The Reserve Bank of New Zealand makes important decisions that dictate NZD interest rates. Likewise, The Monetary Authority of Singapore regulates the SGD. These financial bodies affect the future performance of both currencies. Thus, keeping on top of economic announcements will help inform trading strategies.
- Commodities – As the strength of the NZD is tied to its agriculture, the value of NZD/SGD depends on the price of its commodities. As purchasing power increases, this movement is reflected in a higher exchange rate.
- Exports – As a highly developed economy with established industry sectors, Singapore’s exports drive the economy. The country is known for exporting home electronics and IT, products for shipbuilding and financial services. Tracking the relative strength of these sectors will help you make predictions about the outlook of the NZD/SGD.
- Economic growth – The value of a currency is highly dependant on the strength of its economy. It’s useful to keep up to date with economic indicators like employment rates, inflation and interest rates. For example, Singapore is known for its rapidly growing economy, with low levels of unemployment and a stable economy.
- Political stability – Another important influence is major political events. Political decisions have consequences on the value of the NZD and SGD. To gain a competitive advantage, get to grips with the political landscape in each country.
Correlations
Currencies don’t move independently. Price movement in one pair is often reflected in other pairs with a change in the same direction known as a positive correlation while a trend in the opposite direction is known as a negative correlation.
As NZD/SGD does not have a US dollar component, it is known as a cross pair. Cross pairs often move differently to majors but still in line with other currencies. For example, the movement of New Zealand’s neighbouring currency, the Australian dollar, is often positively correlated to NZD, while SGD is influenced by the USD.
- Positive correlation – This is when currencies move in the same direction as each other. For example, GBP/USD, AUD/USD and EUR/USD are all positively correlated due to the US dollar being the counter currency.
- Negative correlation – This is when forex pairs move in the opposite direction. Popular pairs with a negative correlation include USD/CHF, USD/JPY and USD/CAD. Here the US dollar is the base currency.
Application
The NZD/SGD can be traded alongside AUD/USD and USD/SGD. It is important to note, however, that correlations don’t remain stable. Economic factors and market speculation can cause shifts in currency correlations.
NZD/SGD Day Trading Strategy
Whatever trading strategy you opt for, consider the below.
Timing
Successful NZD/SGD day trading depends on timing. This means trading with high levels of volume and volatility in order to generate profits above the costs of spreads and commission. While the forex market is open 24/5, this doesn’t mean that every one of those hours is worth trading. Therefore you should trade within the ideal window.
Since New Zealand and Singapore are located in the Asia-Pacific region, NZD and SGD will be particularly active from 23:00 GMT to 08:00 GMT. This time frame is when liquidity is at its highest and when bid-ask spreads are lower.
Brokers
Before investing and opening an account with a broker, you should check they offer the NZD/SGD. As an exotic, you might find this pair is not as widely available as majors. Also, the broker may not offer the same leverage on exotics.
Popular brokers like IG and Oanda offer the NZD/SGD. Other resources like TradingView, DailyFX and Yahoo Finance offer technical analysis, exchange rate history, forecasts, conversions and the best spot rates.
News
The latest market news and political events can impact the NZD v SGD exchange rate. There are many dedicated forex news sources that you can follow i.e. Bloomberg and Reuters. You can also practice NZD/SGD trading using fundamentals on a demo account.
History Of NZD
From 1840, the New Zealand pound was the country’s official currency. The New Zealand dollar was introduced in 1967. In 1993, the country issued its first official coins based on the British pound, shilling and pence system.
In 1964, the New Zealand Parliament passed the Decimal Currency Act, which shifted the NZ dollar to a decimal system and transitioned it to the current NZD. This also replaced the pound, shillings and pence with dollars and cents.
NZD was pegged to the USD at 1 NZD = 1.43 USD until 1985 when it was then pegged to a trade-weighted basket of currencies. Since then the New Zealand dollar has been a free-floating currency.
History Of SGD
In 1824, Singapore became a colony of the British Empire. It was then occupied by the Japanese during WWII. For two years in 1963, Singapore was under the federation of Malaysia. However, Singapore gained its independence in 1965. During this, it went through a series of using the Straits dollar, Malayan dollar, the Malaya and the British Borneo dollar.
The Singapore dollar was first circulated in 1967 and it was pegged to the British pound at 8.57 SGD = 1 GBP. Between 1973 and 1985, it was pegged to a hidden basket of foreign currencies. But since then, the Monetary Authority of Singapore has authorised the Singapore dollar as a free-floating currency.
Role Of NZD
The NZD is informally known as the ‘kiwi’, which is a flightless bird native to the country that appears on its $1 coin. As well as New Zealand, the NZD also circulates in the Tokelau, Pitcairn Islands, Niue, and the Cook Islands. The NZ dollar is regulated by the Reserve Bank of New Zealand and is in the top 10 most traded currencies in the forex market.
After the financial crash in 2008, the NZD was one of many high-yielding currencies that lost value, which is why it’s considered a carry trade currency. The country’s economy is greatly dependant on international trade, mainly with the EU, the US, Australia, China and Japan, and is considered a commodity currency. Its main exports include agricultural products like wool, meat and dairy products. Tourism is also important to New Zealand’s economy with the currency appreciating when it attracts holidaymakers.
Role Of SGD
The SGD is regulated by the Monetary Authority of Singapore, which serves as the country’s central bank and financial regulatory entity. The SGD is also a highly traded currency in the forex market, ranked 13th by volume in 2019.
The country is known as a fast-growing and developing Asian nation. For context, its GDP grew from 2.9% to 3.7% between 2015 and 2018. It is also considered one of the strongest and most stable currencies worldwide.
Singapore’s economy is highly dependant on exports such as consumer electronics, pharmaceuticals, petroleum and chemicals. The country is also widely recognised as a major financial services hub and attracts foreign investment due to its competitive tax rates, skilled workforce, and business-friendly culture.
Final Word On Trading NZD/SGD
Trading the NZD/SGD offers an opportunity to diversify your portfolio with an exotic pair. Traders should utilise live exchange rate charts, technical analysis and capitalise on the volumes seen during the most active trading window. It’s also worth keeping up with news events in the respective countries and opening an account with reliable brokers for day trading forex.
FAQ
Is the NZD going to get stronger against SGD?
The NZD exchange rate is affected by many factors, including its strength as a commodity currency and economic events. It’s important to check up-to-date news and live charts for forecasting.
What is the NZD and SGD exchange rate history?
You can find several resources online where you can view historical charts with NZD into SGD exchange rates. Understanding the historical trends behind the currency pair may help with future predictions.
What is the conversion rate of 1 NZD = SGD?
The NZD to SGD conversion rate is continuously moving. See the live price chart in our article for the rate today.
When should I trade the NZD/SGD pair?
Many strategies lend themselves to trading when the forex market sees the most volume, bringing with it tighter spreads and reduced costs. The ideal trading window is during the Asia Pacific session Monday to Friday from 23:00 GMT to 08:00 GMT the next day.
How do I start trading NZD/SGD?
To start forex trading NZD/SGD, you’ll need a broker that offers the currency pair along with excellent tools and favourable trading conditions. See our list of the best forex brokers.