CANBERA (Alliance News) - The Canadian dollar advanced against its major rivals in European deals on Wednesday, as oil prices firmed, and data showed that the nation's retail sales grew more-than-expected in April. Data from Statistics Canada showed that Canada's retail sales rose a seasonally adjusted 0.9% to CAD44.3 billion in April. That beat forecasts for an increase of 0.8%, after a 1.0% drop in March. Core retail sales, excluding motor vehicle and autos, climbed 1.3% on month, following a 0.3% decline a month earlier. Economists were looking for a 0.6% rise. The currency got further support from higher oil prices, which lifted up after an industry group, American Petroleum Institute, reported a 5.2 million barrel drawdown in crude oil inventories last week. The Energy Information Administration will release official data at 10:30 am ET. Investor sentiment improved ahead of tomorrow's Brexit referendum, as analysts predict that the UK voters will likely decide to stay with the EU, averting a potential market tantrum. The currency was higher against most majors in Asian deals, amid rising risk appetite, as investors wait for Fed Chair Janet Yellen's second day of testimony on Capitol Hill today and Thursday's British Brexit vote on its membership in the EU. Extending early rally, the loonie firmed to 82.05 against the Japanese yen, following a decline to 81.47 at 8:15 pm ET. Continuation of the loonie's uptrend may see it finding resistance around the 84.00 region. The loonie spiked up to near a 2-week high of 1.2743 versus the greenback and an 8-day high of 1.4380 against the euro, off its early lows of 1.2817 and 1.4432, respectively. The next possible resistance levels for the loonie are seen around 1.29 against the greenback and 1.46 against the euro. On the flip side, the loonie fell to 0.9585 against the aussie at 8:25 am ET, from an early 4-day high of 0.9531. The loonie is seen finding support around the 0.97 mark. Survey from Westpac Bank and the Melbourne Institute showed that the Australian economy is expected to stay on a narrowly positive path over the next six to nine months - rising 0.21% on month in May. That's up from the downwardly revised 0.14% increase in April. Looking ahead, Eurozone consumer confidence index for June, US existing home sales data for May and US crude oil inventories data are due shortly. At 10:00 am ET, Federal Reserve Chair Janet Yellen will testify on the Semiannual Monetary Policy Report before the House Financial Services Committee, in Washington DC.

Source