Canadian Dollar Falls Amid Risk Aversion, Oil Prices Decline
February 09 2018 - 12:47AM
RTTF2
The Canadian dollar slipped against its most major opponents in
early European deals on Friday amid risk aversion, as worries over
rising bond yields and budget disputes in Washington kept investors
nervous.
The U.S. Senate approved a $300 billion budget deal, after
Congress failed to meet a midnight deadline due to objections from
Republican Senator Rand Paul.
The budget bill now moves to the House, where it faces an
uncertain outcome amid bitter divisions in both parties.
The House may begin voting around 6 am ET today.
Oil prices slipped after Iran announced plans to raise its oil
production to 4.7 million barrels per day within the next four
years.
Crude for March delivery dropped $0.53 to $60.61 per barrel.
The loonie showed mixed trading against its major opponents in
the Asian session. While it held steady against the greenback, it
rose against the yen and the aussie. Against the euro, it
dropped.
The loonie dropped to 0.9824 against the aussie, from more than
a 4-week high of 0.9783 hit at 9:00 am ET. The next likely support
for the loonie is seen around the 0.995 level.
Data from the Australian Bureau of Statistics showed that
Australia home loans fell a seasonally adjusted 2.3 percent on
month in December, coming in at 55,161.
That missed forecasts for a decline of 1.0 percent following the
2.1 percent increase in November.
The loonie declined to a 2-day low of 1.5471 against the euro,
compared to 1.5432 hit late New York Thursday. On the downside,
1.56 is possibly seen as the next support level for the loonie.
The loonie fell back to 1.2610 against the greenback, from an
early high of 1.2585, and held steady thereafter. If the loonie
falls further, it may find support around the 1.27 mark.
On the flip side, the loonie rose to 86.77 against the yen from
yesterday's closing value of 86.28. The loonie is seen finding
resistance around the 88.00 area.
Data from the Ministry of Economy, Trade and Industry showed
that Japan's tertiary activity index decreased unexpectedly at the
end of the year, though slightly.
The tertiary activity index dropped 0.2 percent month-over-month
in December, reversing a 1.1 percent rise in November. Meanwhile,
economists had expected a 0.2 percent increase for the month.
Looking ahead, Canada jobs data for January and U.S. final
wholesale inventories for December will be out in the New York
session.
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