Inside the Currency Market: Mechanics, Valuation, and Strategies

Track New Zealand Dollar/U.S. Dollar

On the ASX, New Zealand trades the 30-day Official Cash Rate Futures and the 90-day Bank Bill Futures contract. Margin requirements were lowered in May 2010 to a tier structure that enhances trading in these contracts. The 30-day contract is quoted in yield percent per annum in multiples of 0.005, it is yield − 100. 1 basis point = New Zealand dollar 24.66. New Zealand, like Australia, works on a fixed-tick arrangement. Multiply price movements by the fixed-tick dollar value of New Zealand dollar—24.66 per 0.01 move by number of contracts (ASX).