What's the relationship between NZD and Oil

Trading Discussion
1

Hey all!

I’m digging a bit more to improve my fundamentals knowledge and I’d like to see if someone could explain me what and why there’s a relationship between Oil and NZD.

I know there’s a relation between gold and AUD, as Australia is a large gold mine, rises in gold price tend to correlate to rises in AUD, probably because of demand to buy the asset locally and similar stuff, but I’m a bit confused about why it seems to be the opposite (a negative correlation) when talking about NZD and oil prices? I’m assuming it has to do with the fact that oil has to be paid in dollars and therefore locally NZDs has to be sold to buy USDs to oil but I’m not sure if that’s the case

Thanks!!

2

Relationship between NZD and oil doesn’t exist. There’s a -ve relationship between USDCAD and oil. Higher oil price tends to strengthen the CAD.
Also the relationship between AUD and Gold has been broken long ago.

1 Like
3

Oh, thanks man! I might have missunderstood one of the articles on the newsletter, I got confused as I interpreted it as it was saying the NZD is negatively correlated to oil

4

Their consumption is way higher than their small size. If I’m not wrong, the prices are quite high there.