The Canadian dollar edged sharply lower against its major rivals in early trading on Wednesday as crude oil retraced back from its recently hit multi-month peak level ahead of weekly crude oil inventories data.
Light sweet crude oil for February delivery is presently quoted at $90.92 a barrel, down $0.57 a barrel from its previous close of $91.49 a barrel in New York on Tuesday. Oil reached as high as $91.53 earlier in the day.
Traders are expecting the crude oil inventories data from the American Petroleum Institute later in the day and the closely watched data from the Department of Energy on Thursday. Both are one day later than normal due to the Christmas holiday.
Last week, the EIA revealed crude oil inventories dipped by 5.30 million barrels, while gasoline stocks moved up by 2.4 million barrels in the week ended December 17. Analysts were expecting crude oil inventories to move down by 3.4 million barrels and gasoline stocks to move up by 1.5 million barrels.
American Petroleum Institute’s last week data showed that crude oil inventories fell by 5.80 million barrels and gasoline stocks declined 2.91 million barrels.
The Canadian dollar slipped to a 6-day low of 81.82 against the yen before holding steady around 7:25 am ET. The loonie-yen pair is presently worth 81.96 and the pair is likely to test support around the 81.70 level and a move below this point could set its weakest mark in nearly a month.
Against the Australian dollar, the Canadian currency slipped to a 6-day low of 1.0177 at this time and a further downtrend could set to breach its last week’s 1-1/2 month low of 1.0202. The aussie-loonie pair is presently quoted at 1.0155.
The Canadian dollar that reached a fresh multi-month high of 1.3094 against the euro around 3:50 am ET pulled back shortly and hit as low as 1.3206 before recouping some losses around 7:25 pm ET. The euro-loonie pair is presently trading at 1.3166.
The Canadian dollar also moved in a similar fashion against the US dollar, retreating from a new multi-month high of 0.9977 around 3:25 am ET to reach as low as 1.0058 after four hours. The greenback-loonie pair is presently quoted at 1.0020.