The NZDCAD is trading within a corrective pressure, where the ongoing fundamental development from CAD and crude oil could affect the pair's price.
Why Is NZD Under Pressure?
The New Zealand Dollar is under pressure due to growing expectations that the Reserve Bank of New Zealand (RBNZ) will cut large interest rates next week.
On November 27, ANZ analysts predicted the RBNZ would cut interest rates by 50 basis points (bps). Next week, we anticipate a 50 bp drop to 4.25%. That would align with market pricing, analysts' projections, and the RBNZ's October communication. According to ANZ analysts, although there has been conflicting data as of the October Fiscal Policy Review, no data appears likely to disappoint the apple cart.
What's for the CAD?
Investors are still concerned about the reduced demand for fuel in China, which is the second-biggest buyer in the world. Furthermore, predictions of a worldwide oil glut should limit any significant increase in the commodity's value.
Additionally, profits for the Canadian dollar (CAD) should be limited due to rumors of greater aggressive policy alleviation by the Bank of Canada (BoC).
