The AUD/NZD currency pairing is a tool to showcase the amount of New Zealand dollars (NZD) that can be bought for one Australian dollar (AUD) in forex trading.
A number of factors weigh on the ratio, with the respective state of the two countries' national economies having a major bearing on determining values.
Commodity trading plays a key role in the valuation of both AUD and NZD, as each of the countries is rich in natural resources.
Australia is the world's third-largest producer of gold and therefore the international value of bullion is something which plays a key role in setting the value for AUD. However, other commodities that have a direct bearing on exchange rates include iron, coal, aluminium and a range of agricultural goods, including cattle livestock and wool.
Blessed with a strong agricultural sector and an abundance of resources of its own, New Zealand's most profitable commodity is its dairy products, with agricultural exports making up 24 per cent of gross domestic product in the country each year. Other prized goods include meat, fish, fruit and wool, while New Zealand's wine industry has flourished over recent years.
Ranked as the tenth most-traded currency in 2010, NZD accounted for 1.6 per cent of daily forex trading deals. Meanwhile, AUD was ranked seventh, making up 5.3 per cent of deals on average.
As a general rule, both currencies benefit from a strong commodities market, with performance in the respective goods specific to each nation playing a key role in setting the AUD/NZD pairing ratio.
Other factors which impact on both AUD and NZD include global economic performance and more specifically, trading volumes and performance in Asia - although recent issues surrounding the ongoing debt crisis in the eurozone have also affected markets, as investors fear a downturn in imports/exports to the region.