NZD/CAD is a cross rate of the New Zealand dollar to the Canadian dollar. It is the most low-liquid instrument, compared to the majors.
The exchange rate of the Canadian and the New Zealand dollars depends on the behavior of the EUR/USD, GBP/USD and USD/JPY currency pairs. They are a kind of an indicator for the NZD/CAD instrument movement.
New Zealand is the world’s largest producer of wool and it is an important fact to be monitored at the time of trading. New Zealand economy directly depends on the partners, such as the USA, Canada and Asia-Pacific regions. Their economic indicators should be taken into consideration while trading this currency pair.
Canada is one of the largest crude oil exporters. Loonie rises with the oil prices growth and vice versa. The world's crude oil prices have a great impact on the NZD/CAD currency pair. Besides, the U.S. dollar should not be underestimated in trading. It is necessary to take into account such indicators of the U.S economy as interest rate, unemployment rate, GDP and job creation index.