Australian, Canadian Dollars Rise Amid Oil Prices Advance
May 18 2017 - 10:00PM
RTTF2
The Australian and the Canadian dollars strengthened against
their major counterparts in the Asian session on Friday amid oil
price rise, as optimism grew that the oil producing countries are
likely to cut its excess crude output.
Traders reflected on EIA data showing another significant
drawdown in U.S. oil inventories, the sixth straight weekly decline
from record highs.
The crude oil delivery for July is currently up by 0.46 percent
or $50.12 per barrel.
Meanwhile, investors are treading cautiously amid the political
crises in Brazil and Washington.
Brazil's President Michel Temer is facing calls for impeachment
in the wake of a corruption scandal, but Temer said he will not
resign and will prove his innocence in the Supreme Court.
Thursday, the Australian and the Canadian dollars showed mixed
trading against their major rivals. While the aussie rose against
the greenback, it fell against the yen and the euro.
Meanwhile, the Canadian dollar rose against the U.S. dollar and
the euro, but fell against the yen.
In the Asian trading, the Australian dollar rose to 1.4949
against the euro and 82.71 against the yen, from early lows of
1.5000 and 82.34, respectively. If the aussie extends its uptrend,
it is likely to find resistance around 1.46 against the euro and
84.00 against the yen.
Against the U.S. and the Canadian dollars, the aussie advanced
to 0.7428 and 1.0102 from an early 2-day lows of 0.7406 and 1.0077,
respectively. The aussie may test resistance around 0.76 against
the greenback and 1.02 against the loonie.
The Canadian dollar rose to a 2-day high of 1.5089 against the
euro, from yesterday's closing value of 1.5097. The loonie is
likely to find resistance around the 1.47 region.
Against the U.S. dollar, the loonie advanced to 1.3592 from
yesterday's closing value of 1.3602. On the upside, 1.34 is seen as
the next resistance level for the loonie.
The loonie edged up to 81.93 against the yen, from an early low
of 81.67. This may be compared to an early 2-day high of 82.03. If
the loonie extends its uptrend, it is likely to find resistance
around the 84.00 region.
Looking ahead, the German PPI for April is due to be released in
the pre-European session at 2:00 am ET.
Eurozone current account data for March is slated for release,
later in the day.
At 5:00 am ET, European Central Bank Executive Board Member
Peter Praet will participate in the moderation of a high-level
panel on "How to address the still low level of banking
integration?" at the ECB/European Commission joint conference on
Financial Market Integration, in Brussels.
At 7:00 am ET, European Central Bank Executive Board Member
Benoit Coeure will participate in a conference on the world economy
organized by the International Center for Monetary and Banking
Studies, in Geneva.
In the New York session, Canada CPI data for April and retail
sales data for March, Eurozone preliminary consumer sentiment index
for May and U.S. Baker Hughes rig count data are set to be
announced.
At 8:00 am ET, ECB Vice President Vitor Constancio will give a
speech on "Banking union and capital markets union: Interaction and
synergies" at the Joint ECB/European Commission Conference on
Financial Market Integration in Brussels.
At 9:15 am ET, Federal Reserve Bank of St. Louis President James
Bullard will give a presentation on the U.S. economy and monetary
policy before the Association for Corporate Growth (ACG) St. Louis
Chapter, in St. Louis, Missouri.
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