The Canadian Dollar is trading at 11.89 against the South African Rand this morning, up 1.23% with a YTD change of 3.26%. The pair's open rate was 11.753, down from their previous close at 11.754. CAD/ZAR is expected to move between 11.84 and 11.92 throughout the day, their 52-week range is forecasted to move between 11.21 and 13.63.
After rising to the 12.00 support level at the beginning of March, CAD/ZAR has experienced a downward trend, falling to 11.83 mid-month. CAD/ZAR had bearish movement within the 11.90 and 11.70 support levels over the past few weeks. The currency pair’s exchange rate is now sitting at levels similar to December 2020 but bearish growth has been seen this week as the pair moves back towards the 11.90 marks.
Oil prices have seen recent declines at the beginning of the week but prices rallied on Wednesday helping CAD steady itself “after it hit its lowest level in nearly two weeks” Reuters reported. With oil being one of Canada’s major commodities, bulls have been watching closely as CAD “clawed back some of its recent declines after a ship ran aground in the Suez Canal raising supply concerns.”
The Bank of Canada has also expressed that there has been “evidence of investor activity in some Canadian housing markets and is concerned that ‘fear of missing out may also be driving price gains.”
The lack of bullish growth in CAD/ZAR can be attributed to ongoing economic strain from the coronavirus and threats of new variants. Both countries are still dealing with travel bans and lack of tourism, Statistics Canada estimated that “Canadian manufacturing sales in February likely dropped 1.0% as spending on the transportation equipment industry declined.”
Growth of CAD/ZAR is anticipated to be minimal until more vaccines are distributed, case numbers decrease and lockdown measures are lifted.
By Surina Nath