The Canadian Dollar is trading at 1.08 against the New Zealand Dollar this morning, down -0.39% with a YTD change of -1.15%. The pair’s open rate was similar to their previous close and the 1.08 level. CAD/NZD day range is expected to stay between 1.0851 and 1.0876, their 52-week range is forecasted to move between 1.08 and 1.24.
The last time CAD/NZD was trading this low was in March 2019. The currency pair managed to recover surprisingly well within a year as their exchange rate jumped to the 1.22 range by March 2020 when the pandemic hit. This sparked interest with bullish traders moving into last summer as it was looking like CAD/NZD would stay within the 1.15 range.
The loonie was able to hold its ground throughout Q3 but dipped to the 1.09 support level by last December and has not been able to recover well moving into 2021, as the exchange rate has stayed below the 1.10 range over the last month.
This drop can be attributed to the lack of economic stimulation Canada has been facing due to extended lockdown measures. With limited access to retail stores and restaurants, CAD has been relying on oil prices to sustain the currency’s market success.
New Zealand has been a world leader in controlling COVID-19 and has been on the road to economic recovery for months now. This success has allowed NZD to perform well against a broad basket of currencies.
As vaccinations become more available and COVID-19 numbers continue to drop across Canada, traders will be watching for a surge in CAD/NZD exchange rate but this will be dependent on control of new coronavirus variants.
By Surina Nath