More like its neighbor to the west, Australia, New Zealand's economy is also export-driven with commodities composed in much of its exports. While most of the trader's see on the "Kiwi" is that it’s not directly connected to one specific commodity, its the relation existing between it and the commodities in general is a significantly great one.
Its correlation is 63%, Since January 1990, when it was compared to the Commodity Research Bureau Index (CRB Index), one of the world’s standards for commodity prices.
This previous chart shows how commodity prices and the New Zealand Dollar have moved in partnership or conjunction with each other over the past 25+ years.
The NZD/USD and CRB Index has had approximately 60% correlation Since January 1990. Then, as commodity prices goes up and goes down, traders can look for similar likely movements in the NZD/USD as because of New Zealand's dependency on its commodity exports.
Just as gold and oil, the trader can directly, firmly, and explicitly state his general views and ideas on commodities by trading NZD/USD.
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