New Zealand Dollar (NZD)

Much like its neighbor to the west, Australia, New Zealand's economy is also export-driven with commodities comprising much of its exports. While most traders' view on the "Kiwi" is that it's not directly linked to one specific commodity, its correlation to commodities in general is a substantial one.

Since January 1990, its correlation is 63%, when compared to the Commodity Research Bureau Index (CRB Index), one of the world's standards for commodity prices.

This chart shows how commodity prices and the New Zealand Dollar have moved in tandem with each other over the past 25+ years.

Since January 1990, the NZD/USD and CRB Index has had approximately 60% correlation. So, as commodity prices rise and fall, traders can look for similar movements in the NZD/USD because of New Zealand's dependency on its commodity exports.

Like gold and oil, a trader can express their general views and ideas on commodities by trading NZD/USD.