NZD/CAD Forex Trading
NZD/CAD Forex Trading
NZD/CAD Live Charts
Use our NZD/CAD live chart to get the most up-to-date insight into the recent performance of this pair and other currency pairs used in forex trading. It can help you make informed decisions at home or on the go – no matter if you use the TickTrader desktop platform, web terminal, or mobile app. Our real-time chart includes the very latest price, historical data, and technical analysis tools to help guide your next trade.
What Is NZD/CAD Trading?
NZD/CAD refers to the currency pair that represents the exchange rate between the New Zealand dollar (also known as the “Kiwi”) and the Canadian dollar (also known as the “Loonie”) in the foreign exchange (forex) market. In this pairing, the value of one New Zealand dollar is measured in terms of Canadian dollars.
For example, if the Kiwi/Loonie exchange rate is 0.85, it means that 1 New Zealand dollar is equivalent to 0.85 Canadian dollars.
The New Zealand dollar and the Canadian dollar are called commodity currencies; the economies of these countries heavily depend on the export of commodities. Canada is a significant exporter of oil, natural gas, minerals (including gold), and other natural resources. The Canadian dollar's value is closely tied to changes in oil prices. New Zealand is a major exporter of dairy products, meat, wool, and other agricultural goods. The New Zealand dollar's value can be impacted by fluctuations in global agricultural prices.
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NZD/CAD Historical Performance
In the 2000s, the NZD/CAD FX exchange rate experienced periods of volatility due to changes in global commodity prices, especially dairy and oil. Economic conditions and interest rate differentials between the Reserve Bank of New Zealand and the Bank of Canada also played a role. From the end of 2000 to the beginning of 2004, the pair surged from 0.6 to 0.9.
After that, the pair corrected, and by the beginning of 2009, it lost almost all previous gains, plunging to 0.62. The global financial crisis had ripple effects on the forex market, including the Kiwi/Loonie pairing. Risk sentiment and economic instability influenced the exchange rate. As the Kiwi is considered a riskier asset, it lost value significantly during the crisis.
However, the New Zealand dollar managed to change the situation, and a decline was followed by a solid uptrend - the price reached above 0.95 by March 2014. After a consolidation, a new downtrend came into force in the second half of 2017, so that the pair tested lows below 0.80.
Major Factors That Affect the NZD/CAD Pair
As it was mentioned above, both New Zealand and Canada are major commodity exporters. Changes in the prices of commodities such as dairy products, agricultural goods, oil, and minerals can influence their respective currencies. When commodity prices rise, it can benefit the exporting country's currency.
Differences in interest rates set by the Reserve Bank of New Zealand and the Bank of Canada can impact the exchange rate. Higher interest rates in one country compared to the other can attract foreign investors seeking higher yields, potentially leading to currency appreciation.
Economic data, including inflation, labour market, foreign trade, business confidence, consumer sentiment, and GDP growth in both New Zealand and Canada, can influence market sentiment and impact the exchange rate.
Global economic and political events can impact the exchange rate. Both currencies can be influenced by market sentiment and perceived risk. For example, the New Zealand Dollar is often considered riskier.
The NZD/CAD pair might also be influenced by movements in other currency pairs, such as USD/CAD and AUD/NZD, due to correlated economic factors.