The Canadian dollar advanced against the US dollar during Wednesday's early trading as oil climbed above $73 today, buoyed by industry data that showed a big drop in U.S. crude stocks.
Saudi Oil Minister Ali al-Naimi's comment also contributed to the positive mood. The minister assured that Gulf economies are strong despite anxieties over financial strains in the region, which helped easing fears about Dubai's debt problems. Against other currencies, the Canadian currency declined during this time period.
The American Petroleum Institute reported that crude inventories in U.S. fell 5.8 million barrels last week.
U.S. crude for January delivery rose 64 cents to $73.26 a barrel by 1:11 am ET, after falling $1.31 on Tuesday. NYMEX crude, which hit its lowest level since late November at $72.43 the previous session, has lost 7.3 percent since prices last rose on December 1. London Brent crude gained 47 cents to $75.66.
At 10:30 am ET today, the Energy Information Administration is scheduled to release its weekly petroleum inventory report for the week ended December 4th.
The loonie edged up against the US dollar during Wednesday's early trading. The Canadian currency hit as high as 1.0602 against the dollar, with 1.043 seen as the next upside target level. The dollar-loonie pair closed yesterday's deals at 1.0640.
From U.S., the Commerce Department is due to release its wholesale inventories report at 10 am ET. Economists expect wholesale inventories at the end of November to show a 0.5% decline.
The Canadian dollar weakened against the currencies of Japan and Australia during today's early trading. The loonie that was worth 0.9617 against the Aussie and 83.17 against the Japanese unit at Tuesday's New York session close, fell to 0.9643 and an 8-day low of 82.35 by 3:55 am ET. If the Canadian currency drops further, 81.27 is seen as the next support level against the yen and 0.978 level against the Aussie.
A government report showed that Japan's gross domestic product expanded by just 0.3 percent in the third quarter of 2009 compared to the previous three months. That was well below analyst expectations for a 0.7 percent quarterly increase following the 1.2 percent expansion in last month's preliminary report.
On an annual basis, GDP was up 1.3 percent - again missing expectations for a 2.8 percent increase after the preliminary report showed a 4.8 percent jump.
The Canadian dollar that largely showed choppy trading against the euro during Wednesday's Asian trading, edged down during early European trading. The local dollar touched a 2-day low of 1.5677 versus the euro, compared to 1.5644 hit late Tuesday in New York. On the downside, 1.593 is seen as the next support level.
Yesterday, the Bank of Canada maintained its key interest rate at a record low of 0.25 percent and reiterated that it expects to leave the rate at its current level until the end of the second quarter of 2010.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.