The Canadian dollar rose against the greenback, yen and the euro during early deals on Thursday as the oil prices rebounded in Asian trade after overnight decline in reaction to a surprise rise in US gasoline reserves. But the petro-linked loonie declined against the Aussie as the latter surged higher as Australia's trade surplus increased more-than-expected in February.

In Asian trading, crude gained moderately in electronic trading. Light sweet crude for May delivery closed at $48.39 per barrel on the New York Mercantile Exchange on Wednesday, down $1.27 a barrel, after hitting an intraday high of $48.96 and a low of $47.26, after an Energy Information Administration data revealed a build in crude oil stockpiles from last week.

The Energy Department on Wednesday said that gasoline, or petrol, stockpiles rose 2.2 million barrels in the week ended March 27, compared with analyst forecasts for a drop of 1.1 million barrels.

US crude oil reserves rose 2.8 million barrels in the same period, compared with forecasts for an increase of 2.6 million barrels.

Yesterday, the Bank of Canada Governor Mark Carney said that the bank is in no rush to use extra-ordinary measures to stimulate lending. Carney said the use of policy measures beyond interest-rate cuts to spur the economy is not preordained.

After its policy meeting on March 3, the bank said it would outline a framework for the possible use of quantitative and credit easing. However, in the following days, the U.S. Federal Reserve and other central banks unexpectedly engaged in special measures, which led market watchers to believe the Bank of Canada may also move to such similar measures. Through yesterday's speech Carney put those assumptions to rest.

The Canadian dollar fell to its lowest level since September 04, 2008 against the Aussie during Thursday's early trading. At about 4:15 am ET, the loonie hit as low as 0.8868, compared to 0.8815 hit late Wednesday in New York. On the downside, the loonie may likely find resistance near the 0.896 level.

The Australian Bureau of Statistics said today that Australia posted a seasonally adjusted trade surplus of A$2.1 billion in February, sharply higher than analyst expectations for a surplus of A$700 million and following the A$970 million surplus in January.

During early trading on Thursday, the Canadian dollar edged up to a 3-day high against the Japanese yen. At about 3:35 am ET, the loonie hit 79.21 against the yen, up from Wednesday's North American session closing value of 78.23. If the loonie ticks up further, 79.4 is seen as the next likely resistance level.

In economic news from Japan, the monetary base grew 6.9 percent year-over-year in March, to 94.46 trillion yen, according to a report released by the Bank of Japan. That's up from 93.65 trillion yen in February, which saw a 6.4 percent annual increase. On a seasonally adjusted basis, the monetary base was up 5.6 percent month-over-month at 94.3 trillion yen.

Against the European currency, the loonie climbed to a 2-day high of 1.6609 by about 4:15 am ET, with next upside target level seen at 1.64. The euro-loonie pair closed Wednesday's deals at 1.6696.

At 7:45 am ET, the European central bank is scheduled to announce the monetary policy decision for the month. Analysts expect the ECB to trim interest rate by 50 bps to a record low of 1.00%. Investors also anticipate that the ECB may adopt unconventional measures such as printing money. Both the Fed and the Bank of England started the so-called quantitative easing in order to boost their ailing economy.

The Canadian dollar rose against the US dollar during Thursday's early trading, climbing to a 2-day high of 1.2523. The loonie may likely find its next target level near 1.238. At yesterday's North American session close, the Canadian currency was quoted at 1.2602 versus the greenback.

From US, the Labor Department is due to release its customary jobless claims report for the week ended March 27th at 8:30 am ET.

At 10 am ET, the Commerce Department is due to release its report on factory goods orders for February. Orders for manufactured goods are likely to have decreased 0.3% in the month.

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