The Canadian dollar edged higher against its major counterparts on Wednesday morning as the price of crude oil was ticking higher ahead of the official inventories data, which is due out later during the session.
Light Sweet Crude Oil (WTI) futures for July delivery, edged up $0.07 to $95.45 a barrel.
Crude oil is Canada's key export and its price fluctuations usually affect the Canadian economy and its currency.
Earlier today, the IEA maintained global oil demand projection at 90.6 million barrels per day (mbd) for 2013, despite projecting higher through-puts in the third quarter 2013.
Yesterday, oil settled lower amid speculation the U.S. Federal Reserve might scale back its aggressive monetary policies after the Bank of Japan opted not to extend its stimulus program.
Prices were also impacted as the Organization of the Petroleum Exporting Countries maintained its global oil demand for the year intact and news reports of higher estimates of crude reserves in U.S. shale deposits.
Japan's core machinery orders fell 8.8 percent month-over-month in April compared to expectations for a 8.1 percent drop. Annually, orders fell 1.1 percent, while economists expected a steeper 4.3 percent decline.
A separate government report showed that corporate goods prices in Japan inched up 0.1 percent month-over-month in May compared to the 0.2 percent increase expected by economists.
The eurozone industrial production grew 0.4 percent in April from a month ago, compared to forecasts for a flat reading after rising 0.9 percent in March.
Year-on-year, industrial production dropped 0.6 percent, but slower than the 1.4 percent decrease seen in March and the consensus forecast of 1.2 percent fall.
The Canadian dollar traded back above the 1.35 level against the euro after a gap of a day, rising as high as 1.3482 around 8:10 am ET. The next probable resistance for the loonie is seen around the 1.3435/40 area.
The Canadian dollar climbed to 1.0159 against the US dollar around 7:45 am ET, its strongest level since May 16. If the loonie extends advance, 1.01 is seen as the next likely resistance level.
The Canadian dollar advanced to a session's high of 95.33 against the yen around 3:45 am ET and the pair has been hovering around the 95.0 area since then. Further bullish extension could help the pair challenging the 95.60/65 area in the near-term.
Looking ahead, the U.S. Treasury Department is set release its monthly budget report for May at 2 pm ET. Economists expect a deficit of $110 billion for the month compared to a surplus of $112.9 million in the previous month.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.