The Canadian dollar advanced against its major counterparts in the European session on Wednesday, as a data from the American Petroleum Institute showed U.S. crude inventories fell more than expected last week.
Global benchmark Brent crude was up 62 cents or 0.84 percent at $74.03 a barrel
U.S. crude inventories fell by 3.2 million barrels in the week to July 20 to 407.6 million barrels, compared with expectations for a decrease of 2.3 million barrels, API data showed late Tuesday.
Official figures from the U.S. Department of Energy's Energy Information Administration will be published at 10:30 am ET.
While reports that China will increase infrastructure spending helped ease demand worries, an International Monetary Fund report predicted a significant drop in oil production in Venezuela, which is experiencing a dramatic collapse in activity and a humanitarian crisis.
Investors focused on a key meeting between U.S. President Donald Trump and European Commission President Jean-Claude Juncker on trade for direction.
The loonie rose to 0.9725 against the aussie, from a 6-day low of 0.9786 hit at 9:30 pm ET. If the loonie extends rise, 0.96 is possibly seen as its next resistance level.
Data from the Australian Bureau of Statistics showed that Australia's consumer prices rose 0.4 percent on quarter in the second three months of 2018.
That was shy of expectations for an increase of 0.5 percent but unchanged from the Q1 reading.
The loonie climbed to a 2-day high of 1.3126 against the greenback, after falling to 1.3166 at 11:15 pm ET. The next possible resistance for the loonie is seen around the 1.30 level.
The loonie appreciated to a 6-day high of 1.5352 against the euro, after having fallen to 1.5380 at 3:45 am ET. On the upside, 1.51 is possibly seen as the next resistance level for the loonie.
Survey results from Ifo Institute showed that Germany's business sentiment weakened marginally in July.
The business confidence index fell to 101.7 in July from 101.8 in June. The score was forecast to fall to 101.5.
The loonie rose back to 84.69 against the yen, heading to pierce its early 2-day high of 84.72. The loonie is likely to find resistance around the 86.00 level.
Looking ahead, U.S. new home sales for June are scheduled for release in the New York session.