The Canadian dollar strengthened against its most major rivals in European deals on Tuesday, as oil prices edged up ahead of the OPEC meeting due later this week to discuss oil production levels.
Crude for January delivery rose $0.11 to $41.76 per barrel.
The Organization of the Petroleum Exporting Countries meet at Vienna this Friday, where matters such as falling oil prices, production quota and the return of Iran’s oil supply are set to be discussed.
The American Petroleum Institute is set to release crude inventories data later in the day, while the Energy Information Administration will publish its official data tomorrow.
Investors focus on key events this week, which includes the European Central Bank’s monetary policy decision and the Fed Chair Janet Yellen’s testimony before the Joint Economic Committee in Washington on Thursday, for more clues. The U.S. jobs data due on Friday is a key gauge to monitor higher rates in the U.S.
The loonie was trading mixed in Asian deals. While the loonie held steady against the euro and the yen, it rose slightly against the greenback. Against the aussie, the loonie fell.
In European trading, the loonie advanced to a 4-day high of 1.3310 versus the U.S. dollar, and held steady thereafter. If the loonie extends rise, 1.32 is possibly seen as its next resistance level.
Reversing from an early low of 92.00 against the yen, the loonie edged up to 92.45. The next possible resistance for the loonie-yen pair may be found around the 93.5 area.
The latest survey from Nikkei showed that Japan’s manufacturing sector activity continued to expand in November and at a faster pace, with a PMI score of 52.6.
That’s up from 52.4 in October, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.
The loonie bounced off to 1.4109 against the euro, from a low of 1.4145 hit at 4:00 am ET. On the upside, the loonie is likely to locate resistance near the 1.40 mark.
Final survey data from Markit showed that Eurozone manufacturing upturn gained further momentum as initially estimated in November.
The final manufacturing Purchasing Managers’ Index came in at 52.8 in November, in line with flash estimate, from 52.3 in October. It was the highest reading since April 2014.
On the flip side, the loonie dropped to near a 4-month low of 0.9718 against the aussie, off its early high of 0.9637. The loonie may possibly challenge support around the 0.98 zone.
The total number of building approvals issued in Australia rose a seasonally adjusted 3.9 percent on month to 19,652 in October, according to a report from the Australian Bureau of Statistics.
That beat forecasts for a decline of 2.5 percent following the 2.2 percent increase in September.
Looking ahead, Canada GDP data for September, Canada RBC manufacturing PMI for November, U.S. construction spending data for October and ISM U.S. manufacturing PMI for November are slated for release in the New York session.
At 12:45 pm ET, Federal Reserve Bank of Chicago President Charles Evans is expected to speak about the economic outlook and monetary policy at the Lansing Regional Chamber of Commerce in East Lansing.
The material has been provided by InstaForex Company – www.instaforex.com