The recent forecasts for the CAD to NZD exchange rate reflect mixed sentiment influenced by economic data and commodity prices. As of late October 2025, the Canadian dollar (CAD) has remained relatively muted, largely impacted by declining oil prices. This week, the CAD has stabilized against the U.S. dollar following Federal Reserve indications of potential rate cuts, which have weakened the greenback and provided some support to the CAD. However, with oil prices recently hitting a five-month low at $63.63 per barrel, concerns over reduced demand for Canadian exports have led analysts to predict further downward pressure on the loonie if the trend continues. The CAD trades at 1.2644 against the NZD, which is notably above its three-month average of 1.235, indicating some strength but still vulnerable to shifts in oil market dynamics.
Conversely, the New Zealand dollar (NZD) has encountered challenges as a cautious market mood has influenced downward momentum. The Reserve Bank of New Zealand's (RBNZ) recent 50 basis points cut in the official cash rate to 2.5% reflects a response to economic vulnerabilities, including rising inflation that reached 3% in Q3 2025. Without significant data releases from New Zealand supporting the currency, the NZD is at risk of further depreciation if market sentiment fails to improve.
Experts believe that the dynamics between the CAD and NZD will continue to be shaped by commodity price fluctuations, particularly oil, as Canada relies heavily on its oil exports. The recent rise in the CAD/NZD rate could continue if oil prices recover; however, persistent drops in oil values could hinder the CAD's strength. Market watchers will keenly await economic indicators from both Canada and New Zealand, which could prompt shifts in the exchange rates. The overall trading range for CAD/NZD remains stable, with recent price action trading between 1.2094 and 1.2655, indicating resilience despite the underlying weaknesses in both currencies.
