CADZAR is considered as a popular currency pair among Forex market players. In fact, CADZAR is the cross rate against the U.S. dollar, even though USD is not included in the pair symbol, it has a significant influence on it. By combing two charts CADUSD and USDZAR in one it becomes more obvious, and you get the approximate CADZAR chart.
The U.S. dollar exerts much influence on both currencies. So for correct prediction of future instrument dynamics, it is necessary to take into account the major U.S. economic indicators, for example, the discount rate, GDP, unemployment rate, the number of new jobs etc. Pay attention that the discussed currencies can show different reaction to the changes in the U.S. economy, therefore, the CADZAR pair is a specific indicator of these currencies fluctuations.
The Canadian dollar is very dependent on the world oil prices. Canada is one of the largest world exporters of oil. For this reason along with increasing of the oil price, the Canadian dollar is also moving up, and, on the contrary, when oil prices slide, the Canadian dollar is falling. Thus, CADZAR depends directly on oil world prices.
South African Rand is one of the most widespread currencies in the world used in numerous trade operations. South Africa is the richest country in Africa as it is rich in mineral deposits. Moreover, South Africa is one of the biggest stock exchanges, and is included in top 10 of the largest world stock exchanges. The country's economy is based on extraction and export of minerals.
South Africa is famous for precious stones and metals, including gold and diamonds. In addition, South Africa is the largest car manufacturer in Africa, targeted mostly to export. In fact, the country is almost totally self-sufficient in raw materials. The factors most affecting the South African Rand exchange rate are prices f precious stones and metals, as well as the level of machinery industry production.
If you trade cross rates, do not forget that brokers usually set a higher spread for this pair than for more popular currency pairs. So before you start working with cross-rates, read all conditions offered by the broker for this certain instrument.