The Canadian Dollar is trading at 5.11 against the Chinese Yuan this morning, up 0.03% with a YTD return of -0.42%. The pair’s open rate was at 5.1108, down from their previous close at 5.1144. CAD/CNY is expected to move between 5.10 and 5.11 throughout the day, the currency pair’s 52-week range is anticipated to sit between 4.82 and 5.29.
CAD/CNY has experienced bearish trading patterns since last fall, the pair’s exchange rate has settled between the 5.00 and 5.20 support levels and hasn’t managed to pass the 5.20 range since September 2020.
In June of last year CAD/CNY was fluctuating above 5.20 but that was only sustained until early September as the second wave of the coronavirus hit Canada causing the exchange rate to drop due to extended lockdown measures and lack of economic stimulation.
Over the last month, CAD/CNY has plateaued within the 5.10 and 5.12 range but there is hope for traders in the coming weeks as quarantine measures are expected to be lifted in Canada which will provide more stimulation in the retail and restaurant industries.
Canada has also been working diligently on the distribution of Pfizer and Moderna vaccinations and awaits the approval of AstraZeneca and Johnson & Johnson vaccinations. After working on providing vaccines to frontline workers, Canada is working on distributing vaccine doses to the population-based on age brackets which will help with both public health measures and the long-term success of the loonie against a broad basket of currencies.
The Times reported that China has taken drastic measures for those looking to enter the country, making anal swaps for the coronavirus mandatory for international arrivals. Many countries have responded to the news in disapproval, describing the process as “humiliating” and “undignified.” China’s COVID-19 case numbers have declined but the overall market performance of CAD/CNY will be dependent on how each country’s economy takes control of lockdown and travel restrictions in the coming months.
By Surina Nath