The New Zealand Dollar is trading at 0.91 against the Canadian Dollar, up 0.05% with a YTD return of 4.24%. The open rate today was 0.9117 which is similar to the previous close of 0.9118. The pairs daily range will move between 0.9111 and 0.9136, the 52-week range is forecasted to fluctuate between 0.80 and 0.91.
Since March when the exchange rate dropped to the 0.81 support level, NZD/CAD has recovered well, making it to the 0.88 level in July and jumping to the 0.90 level in late November.
New Zealand has been successful in keeping its COVID-19 numbers under control, and its currency will continue to gain strength as the economy continues to be stimulated. This opens up trading opportunities for bears, the last time NZD/CAD was trading above the 0.90 level was in March 2019.
The pair has now “moved into a position that offers a potential downside opportunity, although there is still some work to do from the bears and a complicated support structure to break” according to FXStreet.
NZD has been looking overbought compared to a broad basket of currencies but CAD could see bullish movement in the new year due to the close correlation the North American currency has to the oil market.
By Surina Nath