NZD/CAD Plummets Below 0.81 as Canadian Dollar Surges on Hawkish BoC

The New Zealand dollar has been experiencing volatility in recent days, breaking below the 0.81 level against the Canadian dollar on Tuesday.

This move comes as the Canadian dollar gains strength, driven by Brent Crude prices and Middle East supply risks.

The Bank of Canada's decision to hold interest rates at 2.25% last week was seen as a hawkish message, with Governor Macklem stating that multiple hikes are possible if inflation remains elevated.

This has pulled forward expectations for tightening in the Canadian market, contributing to the CAD's strength.

The New Zealand dollar, on the other hand, is being pressured by a deterioration in risk appetite, with the US dollar strengthening against it due to Middle East tensions.