In early deals on Tuesday, the Canadian dollar edged up against its U.S., European and Japanese counterparts as oil rose to $70 a barrel today, after a 3.2 percent decline yesterday as traders watch for clues to the health of the global economy from a U.S. Federal Reserve meeting and a summit of G20 nations this week.
U.S. crude for October delivery rose 36 cents to $70.07 a barrel in Asian deals today. The contract settled down $2.33 at $69.71 a barrel on Monday. London Brent crude gained 32 cents to $69.01.
Oil prices have doubled from their December lows of around $32 a barrel and struck a 2009 high of $75 a barrel in August, thanks to cross-asset ebullience following a stream of positive economic data.
The U.S. Federal Reserve begins a two-day monetary policy meeting on Tuesday and while it is likely to hold interest rates, markets will be watching for any comments indicating the Fed might wind back its super-accommodative policy stance in view of improving economic data.
The Canadian dollar that closed yesterday's trading at 1.0785 against the US currency strengthened to 1.0704 during early deals on Tuesday. The next upside target level for the Canadian dollar is seen at 1.059.
In early trading on Tuesday, the Canadian dollar climbed to 1.5780 against the euro. This may be compared to yesterday's close of 1.5830. The near term resistance for the loonie is seen at 1.566.
The Canadian dollar advanced against the Japanese yen in early deals on Tuesday. At 2:20 am ET, the loonie-yen pair reached 85.52, up from yesterday's close of 85.29. If the pair climbs further, it may likely target the 86.1 level.
During early deals on Tuesday, the Canadian dollar fell to an 8-day low of 0.9360 against the Aussie. On the downside, 0.9373 is seen as the next target level for the Canadian currency. At yesterday's close, the aussie-loonie pair was quoted at 0.9308.
The Aussie jumped against its major counterparts today following the Australian Bureau of Agricultural and Resource Economy report, which showed that commodity exports in Australia are predicted to rake in A$158.31 billion in the current fiscal year that started July 1, down 20 percent year-over-year, thanks to a global decline in commodity prices. That follows an estimated rise of 32 percent to A$197 billion in 2008-09.
Looking ahead, the Italian unemployment rate is due at 5.00 am ET. Economists forecast the jobless rate to rise to 7.7% in the second quarter from 7.3% in the prior quarter.
From Canada, the retail sales report for July has been slated for release at 8:30 am ET.
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