NZD/CAD Chart — New Zealand Dollar to Canadian Dollar

NZD/CAD is a cross pair of the New Zealand dollar versus the Canadian dollar. Both countries have a lot of natural resources, trade relations with other countries and economic indicators that affect both the currency of each pair and the NZD/CAD rate.

Factors That Affect NZD/CAD

New Zealand usually succeeded in exporting goods to its agricultural sector, although the status quo was returned in 1973 when unique relations with the United Kingdom ceased. Government subsidies were abolished in the 80s, and financial control was relaxed. The current account deficit grew at the beginning of this century, but now it is being addressed. The trade-in milk, butter, and cheese, which are the primary export commodities, is now ubiquitous.

New Zealand's natural advantage is that it has excellent agricultural potential and also uses hydropower and natural gas resources. Australia is its leading trading partner because of its proximity, but it has expanded its prospects and is now looking for markets in Asia. There are some concerns about the bloated housing market, which could lead to economic problems.

New Zealand's trading neighbor is Australia, and Canada has the United States with which to export and import. Canada provides essential resources such as wood, oil, and oil sands. Canada is already the most significant oil supplier to the United States, supplying about 16% of all oil and 14% of natural gas to the US economy.

Canada exports to the UK and China, and China, in turn, is Canada's largest supplier, supplying about 10% of imports, second only to the United States. Canada has begun to pay less attention to timber and fisheries and is now more focused on the extraction of minerals and energy resources for export. Canada has the second-largest proven oil reserves in the world, and this factor will become increasingly important in the coming years.

Regardless of the reasons, New Zealand and Canada have changed significantly over the past few decades. The exchange rate depends on where the economies are headed and how much Canada and New Zealand can use their resources and increase industrial exports.

How to trade NZD/CAD

To analyze the NZD/CAD pair, it is necessary to look for changes in the level of inflation, unemployment, industrial production, and other factors that can affect the economy. In general, such changes do not directly affect the pace of the spread, since they put pressure on price dynamics rather than on inevitable changes. To determine when values change, you need to analyze price tables using technical analysis and use them as the basis for your rates.

You will find that the New Zealand dollar against the Canadian is not a famous currency pair for rates. You can even find brokerage firms that do not offer prices for this pair. Of course, if you really wanted to bet on NZD/CAD and could not do it directly, you can bet on NZD/USD and USD/CAD at the same time to create your currency pair with the abolition of the US dollar.

If you think that the New Zealand dollar will rise against the Canadian dollar, you will want to make a long bet. However, sometimes, when you make a bet, the numbers turn against you, and you have to close the bet due to losses. It's usually best to close your bet quickly rather than waiting to see if it changes, as this could damage your account.

If you think that the Canadian dollar is more expensive than another currency, and not the New Zealand dollar, you will need to place a short bet or place a bet on the sale. This is because the Canadian dollar ranks second in the currency pair; therefore, the Canadian dollar appreciation rate is the rate of decline of the New Zealand dollar.

Something went wrong