Canadian Dollar Falls As Oil Prices Weaken
June 20 2017 - 4:19AM
RTTF2
The Canadian dollar slipped against major rivals in the European
session on Tuesday as oil prices fell, with investors cautious
ahead of weekly data on U.S. stockpiles later in the day amid
global supply overhang.
Crude for August delivery fell $0.82 to $43.61 per barrel.
The American Petroleum Institute releases its U.S. crude oil
inventory data later in the day.
Official data from the Energy Information Administration is due
tomorrow. Analysts expect the U.S. inventories to shrink by 1.2
million barrels last week.
Sentiment dampened on news of reviving oil output from Libya,
after Paris based Kpler SAS co. said the amount of oil stored in
nation's tankers hit a 2017 high of 111.9 million barrels earlier
this month.
The loonie traded mixed against its major rivals in the Asian
session. While the loonie held steady against the greenback and the
euro, it rose against the yen. Against the aussie, the currency
declined.
The loonie dropped to a 5-day low of 1.3282 against the
greenback, after having advanced to 1.3204 at 2:00 am ET.
Continuation of the loonie's downtrend may see it challenging
support around the 1.335 region.
The loonie weakened to a 4-day low of 1.0098 against the aussie,
from its early high of 1.0027. The next possible support for the
loonie is seen around the 1.02 mark.
Data from the Australian Bureau of Statistics showed that
Australia's house prices rose 2.2 percent on quarter in the first
three months of 2017.
That was in line with expectations and down from 4.1 percent in
the previous three months.
The loonie edged down to 1.4822 against the euro and 83.86
against the yen, off its near 2-month high of 1.4726 and a 3-month
high of 84.55, respectively. The loonie is likely to find support
around 1.02 against the aussie and 1.49 against the euro.
Looking ahead, U.S. current account for the first quarter and
Canada wholesale sales for April are due in the New York
session.
Dallas Fed President Robert Kaplan speaks about the economy and
monetary policy at the Commonwealth Club in San Francisco at 3:00
pm ET.
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