The Canadian dollar climbed against its key counterparts in the European session on Wednesday amid higher oil prices, as the International Energy Agency noted that the oil markets are rebalancing with crude output falling for the first time in five months in August and inventories of oil stocks in industrialized nations nearing the five-year level.
Crude for October delivery rose $0.46 to $48.69 per barrel.
In its monthly report, the Paris-based agency indicated that global oil demand rose 2.3 million barrels per day in the second quarter, the highest since mid-2015, given stronger than expected consumption in Europe and the US.
The IEA also upped the demand growth for 2017 to 1.6 million barrels per day.
Within the OECD total, product stocks were only 35 million barrels above the five-year average at end-July and could soon fall below it because of the impact of Hurricane Harvey, it said.
Investors await the U.S. Energy Information Administration's weekly crude inventories report, due at 10:30 am ET. Economists forecast a build of crude inventories by 3.2 million barrels in the week ended September 8, falling short of 4.6 million barrels increase registered last week.
Meanwhile, European stocks were trading in a lackluster note, as investors moved to the sidelines awaiting further clarity over North Korea and U.S. President Donald Trump's tax reform bill.
The loonie showed mixed performance in the Asian session. While the currency fell against the aussie and the euro, it held steady against the yen. Against the greenback, it advanced.
The loonie advanced to 1.2135 against the greenback, from a low of 1.2186 hit at 5:00 pm ET. The loonie is likely to target resistance around the 1.19 region.
Following a 2-day low of 1.4590 hit at 9:45 pm ET, the loonie climbed to 1.4532 against the euro. If the loonie extends rise, 1.44 is possibly seen as its next resistance level.
Figures from Destatis showed that Germany's wholesale prices increased at the sharpest pace in four months in August.
Wholesale prices grew 3.2 percent year-over-year in August, faster than the 2.2 percent climb in July.
The loonie firmed against the yen, marking more than a 2-1/2-year peak of 90.76. Continuation of the loonie's uptrend may see it challenging resistance around the 93.00 area.
Data from the Bank of Japan showed that Japan's producer prices were flat on month in August.
That was shy of expectations for an increase of 0.1 percent following the 0.3 percent gain in July.
The loonie edged up to 0.9753 against the aussie, off its early 2-day low of 0.9779. The next possible resistance for the loonie is seen around the 0.96 mark.
The latest survey from Westpac Bank and the Melbourne Institute showed that Australia's consumer confidence spiked in September.
The index climbed 2.5 percent on month to a score of 97.9.
Looking ahead, U.S. producer prices and monthly budget statement for August are due in the New York session.
|See also: Current support and resistance levels|