CAD/CNY Outlook: Slightly positive, but likely to move sideways as the rate is above its recent average and within the middle of its 3-month range.
Key drivers:
• The Bank of Canada has maintained its interest rate at a level that supports the CAD, while the People's Bank of China is implementing measures that could lead to further CNY strengthening.
• Oil prices are currently above average, benefitting the CAD as Canada's economy is closely tied to oil exports.
• China's economic situation appears to be improving due to recent government stimulus, which may bolster CNY demand.
Range: The CAD/CNY exchange rate is likely to hold within its recent range, with potential for small fluctuations but not dramatic shifts.
What could change it:
• Upside risk: A significant increase in oil prices could further boost the CAD.
• Downside risk: Heightened geopolitical tensions or deteriorating trade relations could negatively impact the CAD.