The Canadian Dollar is trading at 5.09 against the Chinese Yuan this morning, up 0.11% with a YTD return of -0.09%. The pair’s open rate sat at 5.08, down from the previous close of 5.09. CAD/CNY is expected to move between the 5.08 and 5.09 range throughout the day, their 52-week range is forecasted to move between 4.82 and 5.31.
After dropping from the 5.20 level to the 5.00 level at the end of last year, the CAD/CNY exchange rate has been fluctuating between the 5.00 and 5.10 range since the beginning of 2021. The currency pair has been experiencing minimal growth over the past weeks but is remaining relatively stable, bearish trading tendencies are likely to continue until more economic stability is achieved in Canada. Low employment rates have caused CAD to experience some stagnation in the market but increasing oil barrel prices have backed the loonie compared to a broad basket of currencies.
COVID-19 cases in Canada have been declining since January; with extended lockdown measures, the distribution of the vaccine, and accessible testing, case numbers have dropped to an average of 3,000 cases per day, and numbers are expected to keep falling.
The Chinese population is “facing mandatory coronavirus tests to travel during the Lunar New Year holiday, some enterprising private firms are eyeing a potential boom from more personalized but pricier services, such as swap tests at home or at work” according to The Chronicle Herald.
China is one of the few countries that offer house-call services for COVID-19 tests; the population is able to book appointments on mobile apps which “allows users to avoid long waits in crowded cues at test centers or hospitals.” Many are opting to pay more than 80 Yuan for their tests with private or third-party testing centers.
With more money being stimulated in the Chinese economy and increasing oil prices in Canada, CAD/CNY is expected to balance each other out and continue experiencing bearish trends moving into next week.
By Surina Nath