The Canadian Dollar is trading at 5.09 against the Chinese Yuan, up 0.53% with a YTD return of -0.50%. The pair’s open rate was 5.09, similar to the previous close of 5.06. CAD/CNY will stay between 5.08 and 5.10 today, the 52-week range is expected to move between 4.82 and 5.37.
CAD/CNY has experienced turbulence since dropping to the 4.84 support level at the beginning of 2018 but has managed to stay above the 5.00 level with the exception of last March when the pandemic began crashing markets. Even with strain from COVID-19, CAD/CNY only dropped to 4.94 and has been moving towards the 5.20 level since.
Bearish traders will be waiting to see if CAD gains any momentum against CNY within the next month as the North American country will be heavily impacted by US politics and the distribution of COVID-19 vaccination.
The US Dollar is trading at 6.45 against CNY this morning, down -0.04% with a YTD return of -1.11%. The open rate was almost the same as the previous close, straddling the 6.45 level. USD/CNY day range will sit between 6.45 and 6.46, the 52-week range will fluctuate from 6.43 and 7.17.
After reaching record highs in 2020, the USD is dropping in value against CNY at 2021 begins; the last time USD/CNY was below the 6.60 level was mid-2018. The pair almost reached the 7.20 level last May but since has been declining rapidly.
Bulls will be watching to see how the Biden presidency will impact markets moving as the month progresses, there are hopes that trading tension between the US and China will be eased which should bring more growth for USD in 2021.
By Surina Nath