CAD/CNY Outlook: Slightly positive, but likely to move sideways, as the rate is above the recent average but lacks a clear driver.
Key drivers:
• The Bank of Canada's recent rate cut to support economic growth may limit the CAD's strength against the CNY.
• Oil prices are currently above average, benefiting the Canadian economy but introducing uncertainty due to their volatility.
• The People's Bank of China is taking steps to stabilize the yuan, reinforcing the currency's position amidst fluctuating external factors.
Range: The CAD/CNY is likely to hold within its recent range as it sits near its 3-month average, with limited action expected.
What could change it:
• Upside risk: Stronger-than-expected economic data from Canada could bolster the CAD.
• Downside risk: Significant drops in oil prices could weigh on the loonie, impacting its competitiveness against the yuan.