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Australian, Canadian Dollars Rise Amid Oil Prices Advance

The Australian and the Canadian dollars strengthened against their major counterparts in the Asian session on Friday amid oil price rise, as optimism grew that the oil producing countries are likely to cut its excess crude output.

Traders reflected on EIA data showing another significant drawdown in U.S. oil inventories, the sixth straight weekly decline from record highs.

The crude oil delivery for July is currently up by 0.46 percent or $50.12 per barrel.

Meanwhile, investors are treading cautiously amid the political crises in Brazil and Washington.

Brazil's President Michel Temer is facing calls for impeachment in the wake of a corruption scandal, but Temer said he will not resign and will prove his innocence in the Supreme Court.

Thursday, the Australian and the Canadian dollars showed mixed trading against their major rivals. While the aussie rose against the greenback, it fell against the yen and the euro.

Meanwhile, the Canadian dollar rose against the U.S. dollar and the euro, but fell against the yen.

In the Asian trading, the Australian dollar rose to 1.4949 against the euro and 82.71 against the yen, from early lows of 1.5000 and 82.34, respectively. If the aussie extends its uptrend, it is likely to find resistance around 1.46 against the euro and 84.00 against the yen.

Against the U.S. and the Canadian dollars, the aussie advanced to 0.7428 and 1.0102 from an early 2-day lows of 0.7406 and 1.0077, respectively. The aussie may test resistance around 0.76 against the greenback and 1.02 against the loonie.

The Canadian dollar rose to a 2-day high of 1.5089 against the euro, from yesterday's closing value of 1.5097. The loonie is likely to find resistance around the 1.47 region.

Against the U.S. dollar, the loonie advanced to 1.3592 from yesterday's closing value of 1.3602. On the upside, 1.34 is seen as the next resistance level for the loonie.

The loonie edged up to 81.93 against the yen, from an early low of 81.67. This may be compared to an early 2-day high of 82.03. If the loonie extends its uptrend, it is likely to find resistance around the 84.00 region.

Looking ahead, the German PPI for April is due to be released in the pre-European session at 2:00 am ET.

Eurozone current account data for March is slated for release, later in the day.

At 5:00 am ET, European Central Bank Executive Board Member Peter Praet will participate in the moderation of a high-level panel on "How to address the still low level of banking integration?" at the ECB/European Commission joint conference on Financial Market Integration, in Brussels.

At 7:00 am ET, European Central Bank Executive Board Member Benoit Coeure will participate in a conference on the world economy organized by the International Center for Monetary and Banking Studies, in Geneva.

In the New York session, Canada CPI data for April and retail sales data for March, Eurozone preliminary consumer sentiment index for May and U.S. Baker Hughes rig count data are set to be announced.

At 8:00 am ET, ECB Vice President Vitor Constancio will give a speech on "Banking union and capital markets union: Interaction and synergies" at the Joint ECB/European Commission Conference on Financial Market Integration in Brussels.

At 9:15 am ET, Federal Reserve Bank of St. Louis President James Bullard will give a presentation on the U.S. economy and monetary policy before the Association for Corporate Growth (ACG) St. Louis Chapter, in St. Louis, Missouri.

by RTTNews Staff Writer

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