The NZDCAD is a quotation that expresses the relationship between the New Zealand dollar and the Canadian dollar. It belongs to commodity quotes as the countries' export volumes impact its rate. When analyzing the pair, consider data on New Zealand's and Canada's trading partners.
The NZDCAD rate depends on GDP, interest rates, inflation, labor market stats, and exports. These are the factors you should pay attention to in the first place.
The NZDCAD is a cross rate because it is converted through the US dollar, and its value is subject to the USD rate.
New Zealand exports agricultural goods, such as wool, leather, meat, and dairy. Most supplies go to China, followed by Australia, the USA, and some European countries.
Canada's main trading partner is the USA. Canada also exports its products — oil, wood, and wheat — to China, Japan, Mexico, and the EU.
Both Canada and New Zealand boast a well-developed tourism sector, so even weather conditions can impact their economies. Besides, droughts and floods affect harvest volumes and quality, and consequently the cost of agricultural exports.
The NZDCAD cross rate's volatility is average, so we can do calm trading in the short and long term. For intraday trading, catch the hours when the American and European trading sessions overlap. Position trading is best done during the Asian session when this cross rate is the least volatile.
Risk warning: Trading in FX and CFDs entails high risk of losing capital.
