The Canadian Dollar is trading at 11.81 against the South African Rand this morning, down -0.65%. The pair’s open rate sits at 11.8907 compared to the previous close of 11.8909. CAD/ZAR will see continuous fluctuation today as the daily range is set between 11.79 and 11.91, the 52-week range is forecasted to sit between 10.61 and 13.62.
The loonie has lost momentum since reaching a high of 13.24 mid-August, and now slipping below the 12.00 support level as December begins. CAD/ZAR was unable to have an exchange rate any higher than 11.99 during the whole month of November which doesn’t give traders much incentive to invest until more bullish trends occur moving forwards.
For weeks CAD has been suffering due to oil prices, impacting the currency’s trading value and overall success in the market. Both CAD and ZAR are expected to recover from their weakened performances once the pandemic is under control and vaccines are distributed.
It is likely that the CAD/ZAR exchange rate could continue to move within their predetermined pattern moving into the beginning of December. It is also likely that ZAR will experience a breakout north in the coming weeks, meaning that there is hope that the South African rand will continue to be one of the best currency performers globally.
Bloomberg reports that ZAR “is well into overbought territory according to its relative strength index, but the rally may be hard to resists.” Some factors that could impact ZAR and extend its gains are South African bond inflows, foreign holdings, and their trade surplus of 174 billion rands.
By Surina Nath