The CAD to CNY exchange rate is currently bearish, trending at 30-day lows near 5.0734.
Key drivers include:
- The Bank of Canada's decision to maintain interest rates at 2.25%, which affects the CAD's attraction.
- Ongoing weakness in Canada’s manufacturing sector, highlighted by a contraction in the PMI, alongside rising U.S. bond yields, is applying downward pressure.
- Concerns over the health of the global economy and its impact on oil prices, which remain somewhat stable near $61.78 but are down from their three-month average.
In the near term, CAD to CNY is expected to remain within a stable range, influenced by fluctuations in oil prices and economic indicators.
An upside risk could emerge from stronger-than-expected Canadian job growth, potentially boosting the loonie. Conversely, insufficient economic recovery signals from China could exert further downward pressure on the CAD against the yuan.