RTTN: Canadian Dollar Jumps To 5-day High Against Japanese Yen
(RTTNews) - During early European deals on Wednesday, the Canadian dollar reversed its Asian session's downtrend against the US dollar, the European currency and the Japanese yen as oil rose above $71 a barrel today. The loonie thus climbed to a 5-day high versus the yen. Meanwhile, the Canadian currency extended its Asian session's 2-month high against the Australian currency.
Crude for January delivery rose 48 cents to $71.17 a barrel by 4:00 am ET, after settling up $1.18 at $70.69 on Tuesday. London Brent crude was up 59 cents at $72.64.
The Canadian dollar that slipped to 1.0631 against the US currency at 2:50 am ET Wednesday strengthened thereafter. The loonie is presently trading at 1.0595 against the greenback with 1.048 seen as the next target level. The dollar-loonie pair closed Tuesday's North American session at 1.0614.
Against the European currency, the loonie edged down to 1.5449 at 1:25 am ET Wednesday. Thereafter, the Canadian dollar reversed its direction and climbed to 1.5407 against the euro at 4:30 am ET, compared to 1.5431 hit late New York Monday. The next upside target level for the loonie is seen around 1.536. Currently, the euro-loonie pair is worth 1.5418.
The Canadian dollar gained ground after hitting a low of 84.21 against the Japanese yen at 12:25 am ET Wednesday. The loonie-yen pair thus climbed to a 5-day high of 84.84 at 4:35 am ET, compared to Tuesday's closing value of 84.48. If the pair gains further, 85.8 is seen as the next target level.
Against the Australian dollar, the Canadian currency extended its Asian session's uptrend during today's early deals. At 4:10 am ET, the loonie advanced to a 2-month high of 0.9505, compared to Tuesday's closing value of 0.9620. On the upside, 0.946 is seen as the next target level for the Canadian dollar.
The aussie plunged today as Australia's GDP grew less than expected in the third quarter and on comments from the Reserve Bank of Australia's Deputy Governor Ric Battelino, who said that monetary policy is getting back into the normal range..
Looking ahead, Eurostat is scheduled to issue final harmonized consumer price figures for November at 5:00 am ET. Eurozone annual inflation stood at 0.6% in November. Economists expect the statistical office to confirm the flash estimate released on November 30. On a monthly basis, inflation is seen at 0.2%.
Simultaneously, foreign trade data for October is due from the Italian statistical office ISTAT. Economists expect the EU trade balance to swing to a surplus of EUR 75.8 million from the EUR 388 million deficit in the previous month.
