Tuesday in Asia, the Canadian dollar showed mixed trading against its major counterparts. The Canadian dollar fell to near a 3-month low against the aussie and a 4-day low against the euro. On the other hand, the loonie showed strength against the greenback and the yen.
Oil rose toward $49 a barrel in Asian deals today, recouping some of previous session's 7 percent loss, but worries over the health of the global economy and a firm U.S. dollar limited gains. U.S. oil for May delivery rose 54 cents to $48.95 a barrel by 9:46 pm ET. The contract settled down $3.97 at $48.41 a barrel on Monday. London Brent crude rose 61 cents to $48.60.
Oil plummeted yesterday after the Obama administration's talk of takeover and bankruptcy for two major U.S. automakers and bank rescues in Europe prompted investors to book profits after a recent run-up to a four-month high.
The Canadian dollar rose to 1.2554 against the US currency during Asian deals on Tuesday. The next upside target level for the Canadian dollar is seen at 1.245. At yesterday's North American session close, the greenback-loonie pair was quoted at 1.2624.
In Asian trading on Tuesday, the Canadian dollar advanced against the yen. At about 11:45 pm ET, the loonie-yen pair reached 78.43, up from yesterday's close of 77.10. The near term resistance level for the pair is seen at 80.5.
The yen slumped today after a report showed that Japan's unemployment rate jumped to a 3-year high in February. The Ministry of Health, Labor and Welfare said that Japan's seasonally adjusted unemployment rate increased to 4.4% in February, slightly higher than forecasts for a 4.3 percent increase after the 4.1 percent gain in January.
The Canadian dollar declined to a 4-day low of 1.6689 against the euro in Asian deals on Tuesday. This may be compared to yesterday's close of 1.6669. If the loonie weakens further, it may likely target the 1.678 level.
During Asian deals on Tuesday, the Canadian dollar fell to 0.8670 against the Aussie. This set the lowest point for the loonie since January 05. On the downside, 0.881 is seen as the next target level for the Canadian currency. The aussie-loonie pair was worth 0.8604 at yesterday's close.
The Reserve Bank of Australia's financial aggregates data for February showed that credit issued to the private sector in Australia was up 5.4% on year in February, while credit issued was steady with a 0.5% gain on month.
Looking ahead, Japan's housing starts for February and the small business confidence report for March are expected at 1:00 am ET.
In the European session, German February ILO unemployment rate, French February housing starts, Italian January retail sales and CPI for March, Euro-zone CPI estimate for March are slated for release.
Across the Atlantic, today will be a busy day with the releases of the S&P/Case-Shiller home price index for January, Chicago PMI for March and the consumer confidence report for March.
Also, Philadelphia Federal Reserve Bank President Charles Plosser is scheduled to deliver a speech on regulatory reform to the University of Chicago Booth School of Business at 1 pm ET.
From Canada, the GPD report for January and the industrial product price index for February are expected.
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