News Column

Canadian Dollar Rises As Oil Prices Advance

August 20, 2014

CANBERA (Alliance News) - The Canadian dollar advanced against its key counterparts in early New York deals on Wednesday, as oil prices rose ahead of official US crude oil inventory data, due shortly.

Crude for October delivery rose USD0.44 to USD93.30 per barrel.

The EIA report, due at 10:30 am ET, may probably show that crude oil inventories fell by 1.750 million barrels last week.

According to a report released late Tuesday by the American Petroleum Institute, US crude oil stockpiles declined by a less than expected 1.4 million barrels in the week ended August 15.

Traders await the release of Federal Reserve's minutes of the July 29-30 meeting to glean clues on the monetary policy outlook.

Data from Statistics Canada showed that Canada's wholesale sales improved for the third consecutive month, rising by 0.6% to CAD53.0 billion in June.

Economists had been expecting the sales to increase by 0.4%, following a revised 2.3% gain a month earlier.

The loonie rebounded to 1.0935 against the greenback, after falling to a 9-day low of 1.0961 at 6:30 am ET. The loonie may possibly challenge resistance around the 1.085 zone.

Continuing early rally, the loonie firmed to a 5-day high of 94.45 against the Japanese yen. At yesterday's close, the pair was quoted at 94.03. If the loonie extends rise, 95.00 is seen as its next possible resistance level.

Japan saw a merchandise trade deficit of 963.99 billion yen in July, the Ministry of Finance said.

That missed forecasts for a deficit of 713.9 billion yen following the 823.2 billion yen shortfall in June.

The loonie that ended yesterday's deals at 1.4573 against the euro edged up to 1.4534. Next key resistance for the loonie may be eyed around the 1.445 region.

Eurozone construction output declined for the second straight month in June, data from Eurostat showed.

Construction output fell 0.7% in June from a month ago. But the rate of decline eased from the 1.4% fall registered in May.

The loonie rebounded from an early 2-week low of 1.0192 against the aussie, rising back to 1.0166. Continuation of uptrend may push the loonie to a resistance around the 1.005 region.

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Source: Alliance News

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