Recent forecasts indicate that the CAD to TWD exchange rate is experiencing upward momentum, with the CAD currently trading at near 90-day highs of 22.63 TWD. This value is approximately 2.7% higher than its three-month average of 22.03 TWD, reflecting a period of stability within a 4% range from 21.76 to 22.63 TWD. This strengthening is driven by a combination of factors in both the Canadian and Taiwanese economies.
The Canadian dollar has shown resilience, buoyed by a surprise drop in unemployment, which decreased from 6.9% to 6.5%, and robust GDP growth of 2.6% in the third quarter—this exceeded expectations and boosted investor confidence. Additionally, rising oil prices have historically supported the CAD, given Canada’s status as a major oil exporter. Recently, oil prices have reached 14-day highs near $63.90 per barrel, indicating a slight recovery from volatility seen in the range of $60.96 to $70.13.
Conversely, the New Taiwan Dollar is influenced by a significant upgrade in Taiwan's economic growth forecast, projected to be 7.37% in 2025, primarily driven by burgeoning demand for AI technology. Additionally, Taiwan's ongoing trade negotiations with the U.S. regarding tariff reductions may further enhance its economic outlook. The increase in defense spending to counter external threats also reflects a proactive stance in maintaining stability and security, which could have implications for investor sentiment.
Market analysts suggest that while the CAD may continue to benefit from its ties to energy prices and positive economic indicators, the TWD's strong growth forecast and trade negotiations could balance the scales. Investors are advised to closely monitor developments related to both economies, as shifts in global commodity prices, trade relations, and monetary policies will play crucial roles in future exchange rate movements between the CAD and TWD.
