Canadian Dollar Strengthens Amid Higher Oil Prices
August 16 2017 - 1:18AM
RTTF2
The Canadian dollar climbed against its most major opponents in
early European deals on Wednesday, as oil prices advanced after an
industry data showed larger than expected draw in oil inventories
last week.
Data from the American Petroleum Institute showed that U.S.
crude inventories fell by 9.2 million barrels in the week to August
11, higher than forecasts for a 3.1 million barrel fall.
Gasoline inventories rose by 0.3 million barrels, while
distillate inventories were down by 2.1 million barrels for the
week.
Attention now turns to the official data from the Energy
Information Administration later in the day, which is expected to
show a 3.2 million barrel drop in crude oil inventories.
Further underpinning the currency was risk appetite, as
geopolitical tensions receded and investors await minutes from the
Federal Reserve's July meeting for clues regarding the future pace
of interest rate hikes.
The currency was lower against its key counterparts in the Asian
session, with the exception of the yen.
The loonie that closed yesterday's trading at 86.75 versus the
yen climbed to an 8-day high of 87.16. The loonie is likely to find
resistance around the 89.00 region.
The loonie hit a 6-day high of 1.4888 against the euro, off its
early low of 1.4986. The next possible resistance for the loonie is
seen around the 1.47 mark.
The loonie reversed from an early low of 1.2770 against the
greenback, edging up to 1.2729. If the loonie rises further, it may
find resistance around the 1.25 area.
On the flip side, the loonie dropped to 1.0016 against the
aussie, after having advanced to 0.9970 at 6:15 pm ET. On the
downside, 1.01 is possibly seen as the next support level for the
loonie.
The latest survey from Westpac Bank revealed that the Australian
economy picked up steam in July.
The bank's leading index moved up 0.12 percent on month, the
bank said.
Looking ahead, U.S. housing starts and building permits, both
for July, and U.S. crude oil inventories data are slated for
release in the New York session.
At 2:00 pm ET, U.S. Federal Reserve is scheduled to publish
minutes of its most recent monetary policy meeting.
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