The Canadian dollar firmed against its most major rivals in New York deals on Tuesday, extending previous session’s rally, as crude oil prices rose sharply amid fears of supply disruptions from Libya after a key port in the North African nation was shut down.
Protesters forced the closure of the oil port of Zueitina, further cutting into already dwindling supplies from Libya.
Meanwhile, tensions between Iran and Saudi Arabia over the civil war in Yemen are also keeping crude oil prices on the rise.
The American Petroleum Institute will release its inventories report later in the day, while the Energy Information Administration will release its official data tomorrow.
The currency showed a pullback after the release the nation’s downbeat trade data for March, but it reversed its course in a short while.
Data from Statistics Canada showed that Canada’s merchandise trade deficit widened to a record C$3.0 billion in March, from a revised C$2.2 billion shortfall in February. Economists were looking for a deficit of C$0.80 billion.
Canada’s imports increased 2.2 percent in March, while exports edged up 0.4 percent.
The loonie climbed to 5-day highs of 1.2020 against the greenback and 1.3401 against the euro, reversing from early lows of 1.2130 and 1.3499,respectively. The next possible resistance for the loonie is seen around 1.18 against the greenback and 1.325 against the euro.
The loonie hit 99.98 against the yen, a level not seen since mid-January. If the loonie continues its uptrend, it may locate resistance around the 102.00 mark.
The loonie remained steady against the aussie, after falling to a 5-day low of 0.9588 in Asian deals. This may be compared to an early 11-day high of 0.9436. At Monday’s close, the pair was valued at 0.9475.
The aussie got lift in early deals, as the Reserve Bank of Australia removed the easing bias from the May statement, even as it cut cash rate to a record low of 2.00 percent.
The material has been provided by InstaForex Company – www.instaforex.com