Prior to switching to the New Zealand Dollar in 1967, the currency used in New Zealand was the pound, which was similar to, but not the same as the British Pound. The present-day New Zealand Dollar is notable for its endearing nickname, the “Kiwi”, for its $1 depiction of the famous flightless bird. Today, the New Zealand Dollar is one of the 10 most-traded currencies in the world and accounts for around 1.6% of the global foreign exchange market daily turnover.
|New Zealand Dollar Contract Specifications|
|Contract Size||100,000 New Zealand dollars|
|Contract Month Listings||Six months in the March quarterly cycle (Mar, Jun, Sep, Dec)|
|Settlement Procedure||Physical Delivery
Daily New Zealand Dollar Settlement Procedure
Final New Zealand Dollar Settlement Procedure
|Position Accountability||6,000 contracts|
|Ticker Symbol||CME Globex Electronic Markets: 6N
Open Outcry: NE
AON Code: UK
|Minimum Price Increment||$.0001 per New Zealand dollar increments ($10.00/contract). $.00005 per New Zealand dollar ($5.00/contract) for NZD/USD futures intra-currency spreads executed on the trading floor and electronically, and for AON transactions.|
|Trading Hours||Open Outcry (RTH): 7:20am-2:00pm CT AON ONLY|
|Globex (ETH): Sundays: 5:00pm – 4:00pm CT next day.
Monday – Friday: 5:00pm – 4:00pm CT the next day, except on Friday – closes at 4:00pm and reopens Sunday at 5:00pm CT.
|CME ClearPort: Sunday – Friday 5:00pm – 4:15pm CT with a 45–minute break each day beginning at 4:15pm|
|Last Trade Date||9:16 a.m. Central Time (CT) on the second business day immediately preceding the third Wednesday of the contract month (usually Monday).|
|Block Trade Eligibility||Yes.|
|Block Minimum||50 Contracts|
|Exchange Rules||These contracts are listed with, and subject to, the rules and regulations of CME.|
New Zealand Dollar Facts
New Zealand dollar futures allow traders to assess value against the U.S. dollar, as well as the opportunity to address risk from currency fluctuations in other foreign trade markets.
Since the 1930s, the Reserve Bank of New Zealand has set monetary policy for its currency. This determines how much money is pumped into their economy and ultimately affects the interest rates of the New Zealand dollar. The Reserve Bank sets their Official Cash Rate (OCR) or the price of money loaned out in order to help control inflation. Events like inflation can have an impact on the strength of the economy and overall the value of the New Zealand dollar.
Source: Reserve Bank of New Zealand
Last updated May 2013
New Zealand Dollar News Articles
- Aussie slips toward five-year low against kiwi (12/3/2013) - The Australian dollar was nearing its lowest value in five years against the monetary unit of New Zealand on Tuesday as policy makers with the central bank of Australia prepared to meet, according to Bloomberg.
- Aussie backtracks from week highs against greenback (11/7/2013) - The Australian dollar fell from week highs against the world's reserve currency on Thursday after the nation's full-time job market endured its sharpest losses in more than a year last month, Bloomberg reports.
- Aussie drops after RBA leaves interest rates unchanged (11/5/2013) - The Australian dollar slumped on Tuesday against the world's reserve currency after the chief of the central bank of the South Pacific nation said the Aussie's value remains too high, Bloomberg reports.
- Aussie slumps against kiwi following weak loan approval data (10/14/2013) - The Australian dollar lost value against the monetary unit of New Zealand on Monday after Australian loan approvals dropped for the first time this year, Bloomberg reports.
- South Pacific currencies harmed by ongoing shutdown in U.S. (10/3/2013) - The dollars of Australia and New Zealand performed poorly on Thursday against the world's reserve currency as the U.S. government's partial shutdown notched a third day, Bloomberg reports.
- South Pacific dollars slip as global stocks wane (9/24/2013) - The dollars of Australia and New Zealand fell against their major rivals during the Tuesday trade session as global stocks pulled back, which cut down demand for stronger-yielding assets, Bloomberg reports.
- Yen dives against rivals following Fed policy decision (9/20/2013) - The Japanese yen dropped toward its four-year trough against the common currency of the European Union on Friday in the aftermath of the U.S. Federal Reserve opting to keep stimulus measures unchanged earlier this week, Bloomberg reports.
- South Pacific currencies reverse two consecutive days of gains (9/18/2013) - The dollars of Australia and New Zealand on Wednesday snapped two days of advances against the world's reserve currency while the policy-making arm of the U.S. Federal Reserve enters its second and final day of meetings, Bloomberg reports.
- Australian dollar hovers one day after strong gains against kiwi (9/17/2013) - The Australian dollar on Tuesday was minimally changed against the kiwi of New Zealand after achieving its largest advance in two weeks during the previous trade session, Bloomberg reports.
- Anticipations of Fed minutes tug down Aussie, Kiwi (8/21/2013) - The dollars of Australia and New Zealand were pinched for a third-straight trading session against the world's reserve currency on Wednesday in anticipation of the U.S. Federal Reserve publishing minutes from the August 5 policy meeting, Bloomberg reports.