Can candida in the nose cause bad odour coming from the nostrils?

Yes. Have you been diagnosed with thrush of the nasal cavity? Usually if you have it in your nose, you will have it in your throat or mouth, too. Do you have white patches in you mouth, throat or nose? Any sore areas? I would make sure this is your correct diagnosis, as other things (like bacteria or foreign bodies) can also cause odor from the nose.