Canadian Dollar Higher As Oil Prices Climb On Falling Crude Inventories
May 30 2019 - 03:47AM
RTTF2
The Canadian dollar strengthened against its major counterparts
in the European session on Thursday, as oil prices firmed after an
industry report showed a larger than expected draw in crude
inventories last week.
Crude for July delivery rose $0.16 to $58.97 per barrel.
Data from the American Petroleum Institute showed that U.S.
crude inventories fell by 5.3 million barrels for the week ended
May 24, while analysts had expected a 857,000-barrel drawdown in
inventories.
Gasoline inventories fell by 528,000 barrels, while distillate
inventories were lower by 2.144 million barrels for the week.
Official data from the Energy Information Administration is due
at 10:30 am ET.
European stocks regained some lost ground as investors hunted
for bargains following recent string of losses on concerns over the
U.S.-China trade dispute and its impact on global growth.
As Beijing threatens the United States with the possibility of a
rare earths export ban, Chinese state media has sent an ominously
worded warning to Washington: "Don't say we didn't warn you."
The loonie was trading mixed against its major counterparts in
the Asian session. While it fell against the euro and the aussie,
it held steady against the greenback. Against the yen, it rose.
The loonie appreciated to a 2-day high of 81.38 against the yen,
from a low of 80.98 hit at 8:45 pm ET. The loonie is likely to find
resistance around the 83.00 level, if it rises further.
The loonie was up by 0.2 percent at 1.3493 against the
greenback, compared to 1.3519 hit late New York Wednesday. Next
likely resistance for the loonie is seen around the 1.33 level.
The Canadian currency that ended Wednesday's trading at 1.5047
against the euro strengthened to a 2-day high of 1.5023. On the
upside, 1.47 is possibly seen as the next resistance level for the
loonie.
The loonie edged up to 0.9344 against the aussie, up by 0.2
percent from a low of 0.9367 touched at 1:00 am ET. Continuation of
the loonie's uptrend may see it challenging resistance around the
0.92 level.
Data from the Australian Bureau of Statistics showed that
Australia's building approvals decreased unexpectedly in April.
Dwelling approvals declined by seasonally adjusted 4.7 percent
sequentially in April. Meanwhile, economists expected approvals to
remain flat for the month.
Looking ahead, Canada current account data and U.S. GDP data for
the first quarter, weekly jobless claims for the week ended May 25,
wholesale inventories, pending home sales and advance goods trade
data, all for April, are due in the New York session.
At 12:00 pm ET, Federal Reserve Governor Richard Clarida will
deliver a speech at the Economic Club of New York.
AUD vs CAD (FX:AUDCAD)
Forex Chart
From Feb 2024 to Mar 2024
AUD vs CAD (FX:AUDCAD)
Forex Chart
From Mar 2023 to Mar 2024