NZD/CAD – Live and Historical Rates
Neither the New Zealand Dollar (Kiwi) nor the Canadian Dollar are major currencies. Thus, the pair they form together is not a major, or a commodity pair. The above chart shows the amount of CAD one needs to purchase a NZD.
The NZD was introduced in 1967, replacing the New Zealand Pound. The country had had a distinct currency from that of Britain since 1933. The NZD currently serves as the national currency for 5 countries. Besides New Zealand itself, Tokelau, Niue, the Pitcairn Islands and the Ross Dependency also use it, alongside the Cook Islands. The strength of the Kiwi relies heavily on the strength of the economies which comprise New Zealand’s largest trading partners, namely the US and the Australian economies. Since agricultural products represent the bulk of the country’s economic output, the value of the kiwi dollar is indeed rather sensitive to the fluctuation of these prices.
The Canadian Dollar has been floating since 1970. Controlled by the Bank of Canada, the currency hasn’t really required any major or minor interventions lately. At one time under the authority of the British Monarchy, Canada’s currency is still most dependent on the US dollar and the strength of the US economy. The geographical proximity of the two countries means that some 85% of the country’s exports head to the US. Also, around 50% of its imports originate from the US too.
With that in mind, it isn’t exactly surprising that at one time, the assimilation of the CAD into the USD was sought.
The best way to find trading opportunities with this low-volume pair is to watch the commodity and agricultural price fluctuations. Changes in the economies of New Zealand’s major trading partners also impact the value of the kiwi. The US, Australia and Japan are included in this category.