Thursday in Asia, the Canadian dollar dropped to a 2-day low against its US and Japanese counterparts as the crude oil prices fell toward $65 a barrel today, extending its 7 percent overnight drop after rising job losses sharpened worries of a global recession and growing U.S. fuel stockpiles underscored dimming oil demand.
On the other hand, the Canadian dollar jumped to a 2-day high against the Aussie due to across the board weakening of the latter. Against the euro, the loonie showed choppy trading during this time.
During Asian deals on Thursday, the Canadian dollar slipped to a 2-day low of 1.1762 against the US currency. This may be compared to yesterday's close of 1.1691. On the downside, the Canadian currency is likely to target the 1.189 level.
The Canadian dollar, which closed yesterday's trading at 83.79 versus the yen, fell to a 2-day low of 83.09 in Asian deals on Thursday. The next downside target level for the loonie-yen pair is seen at 79.6.
The yen advanced today as a fall in stock prices prompted investors to sell higher-yielding assets funded in Japan. The stock markets across the Asia-Pacific region were trading sharply lower today after Wall Street plunged overnight, shrugging off the mood of optimism surrounding Barack Obama's election, as economic data revealed deep cuts in employment by private employers and a contraction in services sector activity in October.
The Bank of Japan's board of governors agreed that the turmoil in the global financial markets was spreading to the Japanese economy and causing some distress, monetary policy meeting minutes from October 6 and 7 revealed today. Several of the board members added that the Japanese economy, which may already be in a technical recession, may need more time than originally anticipated for a full recovery.
At the meeting, the board voted unanimously to leave interest rates on hold at 0.50 percent. The board had gone 23 consecutive meetings without changing the rate - including the last 12 meetings by a unanimous vote. The BOJ has kept rates unchanged since a 0.25 percent increase in February of 2007.
However, at a subsequent meeting on October 31, the board decided to trim the overnight call rate by 20 basis points to 0.30 percent. The vote was a split decision, with board members Mizuno, Nakamura and Kamezaki voting against the rate cut - so the deciding vote was cast by BoJ Governor Masaaki Shirakawa, who elected to go with the rate cut. The split vote was the board's first since November 2007.
In Asian trading on Thursday, the Canadian dollar gained against the Aussie and reached 0.7862 by about 10:25 pm ET. This set a 2-day high for the loonie. If the loonie advances further, 0.7840 is seen as the next target level. The aussie-loonie pair was worth 0.7958 at Wednesday's close.
The Australian Bureau of Statistics said today that the unemployment rate in Australia held steady in October, standing at 4.3 percent on year, beating forecasts that called for a 4.4 percent annual increase. The total number of employees soared by 34,300, the data showed, versus expectations for a decline of 7,500. Full-time employment was down 9,200 to 7.69 million.
Against the European currency, the Canadian dollar bounced between 1.5065 and 1.5156 during Asian deals on Thursday. The near term downside and upside target levels for the euro-loonie pair are seen around 1.485 and 1.521, respectively. The pair closed yesterday's North American session at 1.5138.
Looking ahead, the German factory orders report for September is due at 6:00 am ET today.
Also, investors anxiously await the European Central Bank's interest rate decision, which has been scheduled for 7:45 am ET. Analysts expect the ECB to cut interest rate by 50bps to 3.25% to save the economy from further deterioration.
Forty-five minutes after the rate announcement, the ECB President Jean-Claude Trichet will hold a press conference. The ECB reduced the target to 3.75 percent from 4.25 percent on October 8, joining the Federal Reserve, the Bank of England, the Bank of Canada and the Swiss National Bank in coordinated reductions.
Across the Atlantic, the Canadian September building permits and October Ivey PMI, US weekly jobless claims and the third quarter nonfarm productivity reports are expected to influence trading in the North American session.
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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.