New Zealand Dollar vs. US Dollar
As a currency that is typically low-yielding, the Yen is an alluring agent for funding carry trades (where, at low JPY rates, traders borrow to buy higher-yielding currencies, which includes NZD). Investors prefer carry trades during periods of certainty about international economic stability and performance; they avoid them during periods of market strain. As such, NZD/JPY is reactive to fluctuations in broad-based market sentiment trends. The pair is similarly reactive to economic updates from important trading partners (such as China), and domestic partners, both of which anticipate the monetary policy of the Reserve Bank of New Zealand.