The CAD to NZD exchange rate has been relatively stable in recent weeks, currently trading at 1.2503, which is close to its 7-day lows and within a narrow 3.5% range from 1.2276 to 1.2708. Recent analyst forecasts indicate that the Canadian dollar (CAD), commonly referred to as the "loonie," is under pressure largely due to fluctuations in oil prices, which is a significant driver of the CAD's value. Oil is currently trading at 62.51, slightly below its 3-month average and exhibiting notable volatility, with an 18.8% range over the past fortnight. Analysts suggest that a rebound in oil prices could provide some upward momentum for the CAD.
Economic indicators from Canada show promising signs, such as a robust GDP growth rate of 2.6% in the third quarter and a falling unemployment rate to 6.5%. Upcoming retail sales data may further influence the CAD's performance, with expectations of positive growth in November potentially giving the currency a boost.
On the other hand, the New Zealand dollar (NZD) has struggled to capitalize on favorable domestic conditions, including stronger-than-expected GDP figures. The Reserve Bank of New Zealand's (RBNZ) recent decision to reduce the Official Cash Rate to 2.75% could widen the interest rate differential between New Zealand and other economies, contributing to a bearish outlook for the NZD. Furthermore, global trade tensions and weaker market sentiment regarding the NZD exert additional pressure on the currency.
Analysts emphasize that both currencies are influenced by their respective central bank policies, commodity price movements, and global market dynamics. With the current economic landscape, forecasts remain cautious but indicate that better-than-expected economic data from either country could shift the CAD/NZD exchange rate in the near future. Overall, market participants should closely monitor economic releases and commodity trends to navigate international transactions effectively.
