The Canadian Dollar is trading at 1.09 against the New Zealand Dollar, up 0.13% with a YTD return of -0.16%. The pair’s open rate was 1.0913 today, similar to the previous close at 1.0910. The daily range for CAD/NZD should stay within the 1.90 level, the 52-week range is anticipated to move between 1.08 and 1.24.
CAD/NZD has been trying to recover back to the 1.10 level that was reached at the beginning of the month but with New Zealand having more success controlling COVID-19, their economy and currency have the chance to regain some strength from the decline that was recorded two weeks ago.
New Zealand has 68 active coronavirus cases and has an average of 5 new cases a day. According to FX Street “the government’s great attention to the pandemic, its decisive decision-making power, the active cooperation of the people, and the adequate supply of epidemic prevention materials” has helped both public health and economic re-growth.
New Zealand’s government also stated that “the drug regulatory agency is granting interim approvals for Pfizer BioNTech vaccines, and is expected to vaccinate people as early as March” which would further bolster NZD.
Bears will be watching to see if CAD can make it back to an exchange rate of 1.22, a high last seen in March 2020 when lockdowns began, but this is dependent on employment rates, the spread of the vaccine, and oil prices. If the Keystone XL pipeline is canceled as President Biden hopes, the Canadian oil industry will suffer dramatic setbacks which will impact the success of the loonie.
By Surina Nath