CAD to NZD Exchange Rate

What influences the CAD/NZD exchange rate?

 
Both the Canadian dollar and New Zealand dollar are considered commodity currencies, and both are heavily reliant on the economic health of critical trade partners: the U.S. for Canada and Australia for New Zealand.¹  Therefore the CAD/NZD exchange rate may be influenced by commodity prices as Canada’s top exports include crude petroleum and wood products.
 
On the other hand, the New Zealand dollar (or Kiwi) can depend heavily on the price of milk, due to New Zealand’s reliance on its dairy industry for 30% of all exports. It’s worth keeping an on China’s trade policies as it is also a key importer for both nations.
 

CAD/NZD Snapshot

 
“New Zealand is a reliable and complementary trade partner for Canada, and the two countries co-operate closely in multilateral trade negotiations and the Cairns group of agricultural exporters.” – High Commission of Canada in New Zealand²
 

• Bilateral merchandise trade between Canada and New Zealand was $1.028 billion in 2014. Exports to New Zealand were $414.3 million. Fertilizers, aircraft parts, wood products, and machinery were Canada’s top exports. Top exports from New Zealand to Canada were $613.9 million, and the top exports included machinery, beverages, and meat.²

• New Zealand’s increased engagement within the Asia-Pacific region has sparked interest from Canada. New Zealand was the first developed nation to sign a free trade agreement with China, and it’s an important member of the Trans-Pacific Partnership.²

• In 2015, Canada was ranked 10th in GDP, while New Zealand ranked 53rd.³

• In 2015, Canada was the 11th largest exporter and 10th largest importer in the world.⁴ New Zealand was the 54th largest exporter and the 57th largest importer.⁵

• Canada’s top exports include crude petroleum, cars, refined petroleum, vehicle parts, and helicopters, planes, and spacecraft. Its top export countries include the United Kingdom, while its top import countries include Germany.⁴

•  New Zealand’s top exports include milk, meat, butter, and wood products. Its top trade partners include China and Australia.⁵

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Currency Name: New Zealand Dollar
Currency Code: NZD
Currency Symbol: $
Central Bank: Reserve Bank of New Zealand
Countries Used In: New Zealand
Major Unit: One dollar
Minor Unit: One cent
Note Denominations: $5, $10, $20, $50, $100
Coin Denominations: 10c, 20c, 50c. $1, $2

 

Sources:

1. https://lop.parl.ca/Content/LOP/ResearchPublications/tips/tip117-e.htm
2. http://www.canadainternational.gc.ca/new_zealand-nouvelle_zelande/bilateral_relations_bilaterales/canada_new_zealand-nouvelle_zelande.aspx?lang=eng&_ga=2.178456738.764771610.1497977016-1910332906.1497977016
3. http://databank.worldbank.org/data/download/GDP.pdf
4. http://atlas.media.mit.edu/en/profile/country/can/
5. http://atlas.media.mit.edu/en/profile/country/nzl/