Exchange Rate Calculator

The exchange rate between the New Zealand Dollar (NZD) and the Canadian Dollar (CAD) has experienced notable fluctuations over the past few months, influenced by various economic indicators and market sentiments. This report provides an analysis of the recent trends, technical indicators, and future outlook for the NZD/CAD currency pair.

Recent Exchange Rate Trends

Between January and March 2025, the NZD/CAD exchange rate exhibited a range of movements:

• January 2025: The exchange rate began the year around 0.8047 CAD per NZD on January 13, 2025, and experienced a gradual increase, reaching approximately 0.8175 by January 31, 2025.

• February 2025: The pair showed relative stability, fluctuating between 0.8047 and 0.8175 CAD per NZD.

• March 2025: The exchange rate continued its upward trend, peaking at 0.8251 CAD per NZD on March 20, 2025.

Technical Analysis

Technical indicators provide insights into the momentum and potential future movements of the NZD/CAD pair:

• Relative Strength Index (RSI): On March 28, 2025, the RSI was at 45.095, indicating a neutral position.

• Moving Average Convergence Divergence (MACD): The MACD value stood at 0, suggesting a sell signal.

• Moving Averages: The 5-day simple moving average was at 0.8181, indicating a buy signal, while longer-term moving averages (50-day and 100-day) were below the current price, suggesting potential resistance levels.

Economic Factors Influencing the Exchange Rate

Several economic factors have contributed to the movements in the NZD/CAD exchange rate:

• Commodity Prices: Both New Zealand and Canada are commodity-exporting nations. Fluctuations in global commodity prices, such as dairy products for New Zealand and oil for Canada, have impacted their respective currencies.

• Interest Rate Differentials: The monetary policies of the Reserve Bank of New Zealand (RBNZ) and the Bank of Canada (BoC) have influenced investor sentiment. Changes in interest rates affect the attractiveness of a currency to investors seeking yield.

• Economic Data Releases: Indicators such as GDP growth, employment figures, and trade balances from both countries have provided insights into economic health, influencing currency valuations.

Future Outlook

Analysts have projected a modest appreciation of the NZD against the CAD in the near term:

• Three-Month Forecast: The NZD/CAD exchange rate is expected to rise to 0.81, a 0.56% increase from the current rate.

• Six-Month Forecast: The exchange rate is projected to remain at 0.81, maintaining the 0.56% increase.

• Twelve-Month Forecast: The NZD/CAD exchange rate is anticipated to reach 0.82, marking a 1.8% increase from the current rate.

Conclusion

The NZD/CAD exchange rate has shown an upward trend in recent months, influenced by technical indicators and economic factors. While short-term technical analysis suggests a cautious approach, medium to long-term forecasts indicate a potential appreciation of the NZD against the CAD. Investors should monitor economic developments and central bank policies in both countries to make informed decisions regarding this currency pair.