NZD/CAD up from 1-month low with RBNZ, Canada data in focus

The NZD/CAD currency pair was attempting a rebound from a one-month low of 0.8323 on Tuesday ahead of the outcome of the RBNZ’s policy meeting on October 9th and Canadian trade balance data.

The Reserve Bank of New Zealand is expected to reduce its official cash rate by 50 basis points to 4.75%. It would extend the 25 basis point rate cut the central bank delivered in August – the first reduction since March 2020.

Annual CPI inflation in New Zealand slowed to a 3-year low of 3.3% in the second quarter of 2024 from 4% in Q1, thus, further approaching the RBNZ’s 1%-3% target range.

Meanwhile, CAD traders will be paying attention to the upcoming Canadian trade figures due out at 12:30 GMT.

Canada probably recorded a trade deficit of CAD 0.5 billion in August, according to market consensus, after a CAD 0.68 billion surplus in July.

As of 10:36 GMT on Tuesday the NZD/CAD currency pair was edging up 0.10% to trade at 0.8343.