The NZD to CAD exchange rate is currently range-bound, reflecting stability in recent movements.
Key drivers include:
- The Reserve Bank of New Zealand is expected to cut interest rates, which may weaken the NZD further against the CAD.
- Canada’s recent strong jobs report and the Bank of Canada holding its rate steady at 2.25% will likely bolster the CAD.
- Rising oil prices, currently near 30-day highs, support the CAD due to Canada’s status as a major oil exporter.
In the near term, the NZD/CAD rate is likely to remain within a stable range around its recent average.
Upside risks include a potential resurgence in global risk sentiment that could support the NZD. Conversely, a sharper-than-expected slowdown in the New Zealand economy may further dampen the NZD's performance. As a result, businesses and individuals engaged in currency transactions should remain vigilant about economic developments in both nations.