The Canadian Dollar is trading at 5.13 against the Chinese Yuan this Friday, down -0.29% with a YTD return of -4.37. The currencies exchange rate has an open rate of 5.13 compared to the previous close at 5.14. CAD/CNY daily range will fluctuate between 5.11 and 5.14, the 52-week range is anticipated to sit between 4.82 and 5.38.
CAD has gained some strength over the last month moving from the 5.00 support level to 5.11, there are hopes that the loonie will recover and reach the 5.28 level that was seen in June which was a yearly high for CAD/CNY. With rapid development and distribution of COVID-19 vaccinations, CAD is favored to gain traction as December progresses. Traders are likely to follow bearish patterns until Canada releases a vaccine. The Chinese market is expected to fluctuate moving into 2021 due to Biden’s transition into the White House which will impact CAD/CNY as well.
The US Dollar is trading at 6.54 against CNY, up 0.04% with a YTD return of -5.99%. The pair’s open rate sat at 6.53 compared to the previous close of 6.54. USD/CNY daily range will move between 6.53 and 6.54, the 52-week range is forecasted to stay between 6.52 and 7.17.
The USD has been fighting to recover from recent market losses, as the US Dollar has been steadily declining since June where the exchange rate reached a high at the 7.01 support level. The last time USD/CNY was trading below the 6.70 level was in the middle of 2018, this yearly low will cause traders of the pair to hold off until the US and China stabilize their political and social relations.
By Surina Nath