- NZD/CAD has been quite volatile this year. This is perhaps "true to form", considering both NZD and CAD are commodity currencies.
- NZD is higher on the year versus CAD, yet NZD/CAD recently registered a 'lower high', and there is a possibility that the pair will start to turn downward.
- On the basis of Purchasing Power Parity, NZD/CAD is probably still overvalued. Meanwhile, New Zealand has sector-specific vulnerabilities.
- Provided oil prices do not collapse materially over the medium term, it is probable that NZD/CAD will fall back down to its probable fair value.
For further details see:
NZD/CAD: Downside Pressure Likely As NZD Appears Fundamentally Overvalued