NZDCAD (NZDCAD^)

Pairing – The amount of Canadian dollars (CAD) that one can buy for every New Zealand dollar (NZD).

Position

NZD – World’s eleventh most traded currency

CAD - World’s sixth most traded currency

Important factors

• Trade – New Zealand’s manufacturing and technology sectors are limited, most of their exports are from the agricultural sector, so prices of such commodities can affect the strength of the currency, as can international trade Australia and Asia, as well as the US and the EU.
• Stability – Both countries maintain a strong degree of economic stability, New Zealand has stayed steady throughout the global crisis, and with unemployment at around 7%, Canada boasts a strong and wealthy economy.
• Commodities – Where New Zealand’s currency is closely tied to the price of wool, meat, and dairy, Canada’s dollar is more connected to commodities such as timber, oil, and electronics.
• Floating currency – The Canadian dollar is a floating currency, after a period from 1962-1970 when the currency was on a peg of 0.925 USD = 1 Canadian Dollar.