The CAD to NZD exchange rate has been characterized by volatility, with the CAD recently trading at 30-day lows near 1.2413, close to its three-month average. The pair has navigated a stable range of 5.1% between 1.2094 and 1.2708. Analysts note that the Canadian dollar (CAD) has primarily been influenced by fluctuating oil prices, as Canada is one of the world's largest oil exporters. Currently, oil prices are at $62.67, 3.2% below their three-month average, having experienced a notable 15% trading range. This decrease in oil prices typically exerts downward pressure on the CAD, as lower commodity demand may impact the overall economic performance.
In recent updates, the CAD's bargaining power has been somewhat supported by firmer oil prices, though it remains volatile due to pressure from U.S. labor market data. The Bank of Canada's decision to cut interest rates twice within a month—first to 2.5% in late September and then to 2.25% in late October—reflects concerns over weakening economic conditions and signals potential further easing. These rate cuts could dampen investor sentiment towards the CAD, as lower interest rates may discourage foreign investment.
The New Zealand dollar (NZD), on the other hand, has shown a mix of gains and losses. Recent concerns surrounding New Zealand's economic outlook—highlighted by an increase in the unemployment rate to 5.3% and a significant contraction of 0.9% in Q2 2025—have dampened its appeal. Despite some brief risk-on rally periods, a surprise 50 basis point rate cut by the Reserve Bank of New Zealand (RBNZ) in October, aimed at stimulating growth amid economic challenges, may have further pressured the NZD.
Moving forward, the interplay between global economic data, particularly from the U.S. and commodity price movements, will be crucial for the CAD to NZD exchange rate. As the economic outlook for both countries evolves, analysts suggest that traders should keep a watchful eye on market sentiment towards risk and commodity prices to make informed decisions regarding international transactions.
