The Canadian dollar plummeted to a new multi-month low against the US dollar, and new multi-week lows against the currencies of Europe and Japan during early Asian deals on Tuesday. But the loonie showed choppy trading against the Australian dollar during this time period.
The Canadian dollar weakened as the oil prices plunged to a three-month low yesterday as Edouard's winds eased, reducing concern that offshore oil rigs and platforms would be damaged by the storm. Light, sweet crude for September delivery fell US$3.69 to settle at US$121.41 a barrel on the New York Mercantile Exchange, its lowest settlement price since May 5. In the Asian session Tuesday, oil has slipped further by more than a dollar to $120.37 a barrel by 21:38 ET.
The Canadian currency fell to a 5-week low of 1.6170 against the euro by about 8:15 pm ET Monday. Thereafter, the loonie gained slightly and is now worth 1.6143 per euro. This may be compared to Monday's New York session closing value of 1.6149.
The euro-zone retail sales and services PMI reports from Germany, Italy, France and euro-zone are the major economic releases slated for release in the upcoming session.
Against the US dollar, the loonie dropped to 1.0399 during today's early Asian deals, which set a lowest point for the latter since September 12, 2007. The dollar-loonie pair was worth 1.0367 at Monday's close.
The ISM non-Manufacturing composite report for July and Federal Open Market committee rate decision are expected to drive deals in the New York session today. The FOMC is widely expected to hold the rate at 2.00%.
The Canadian currency largely bounced between 0.964 and 0.963 against the Australian dollar in Tuesday's early trading. Currently, the pair is quoted at 0.9636, compared to 0.9637 hit late yesterday in New York.
Investors are keenly waiting for the Reserve Bank of Australia's monetary policy announcement that has been scheduled at 12:30 am ET. Analysts expect the central bank to keep rates steady at 7.25%.
Canada's currency was also weaker against the Japanese yen in Tuesday's early Asian deals. The loonie that closed yesterday's trading at 104.51 against the yen, dipped to a 3-week low of 104.10 by about 8:45 pm ET. As of now, the pair is quoted at 104.23.
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