The New Zealand Dollar is trading against the Canadian Dollar at an exchange rate of 0.91 this morning down -0.01%. The open rate today is the same as the pair’s previous close of 0.9119 with a YTD return of 4.23%. The day range will sit between 0.911 and 0.913 with a 52-week range that will fluctuate between 0.80 and 0.91.
After the success of controlling COVID-19, NZD has gained traction throughout the month of November, reaching a six-month high moving into December. In fact, NZD is performing better than it was prior to the spread of coronavirus at the beginning of March, where the currency’s exchange rate against CAD was 0.86.
The New Zealand Dollar has been looking overbought against a broad basket of currencies; NZD CAD has moved higher from the 50% Fibonacci retracement level of 1.80, from 0.61-0.99. There are hopes that CAD will bounce back with bullish tendencies due to the currency’s dependence on oil prices as well as the success of a COVID vaccine.
NZD/CAD is now close to its 20-day averages, located at 0.89. This is likely to cause traders to notice that the pair’s strongest trend appears on the 30-day horizon. Over this monthly time period, prices have been moving up in favor of NZD.
“The New Zealand Dollar has surged by 3.41% against the Canadian Dollar since the beginning of November”, the potential target for NZD/CAD is aimed to be near the 0.92 level, however, the 0.90 level could provide resistance for the currency exchange rate in the shorter term.
By Surina Nath