Forex News: Canadian Dollar Falls Amid BoC Rate Cut Speculation

Canadian Dollar Falls Amid BoC Rate Cut Speculation

(RTTNews) - The Canadian dollar weakened against other major currencies in the Asian session on Thursday, as the latest Canadian PMI survey supports speculations on a rate reduction by the Bank of Canada.

Wednesday, data from S&P Global showed that Canada's S&P Global Manufacturing PMI fell from 48.3 in August to 47.7 in September. The manufacturing sector had a dip for the eighth consecutive month, which caused the CAD to fall.

Crude oil prices fell sharply on concerns of excess supply after OPEC said it will hike output more than expected in November. West Texas Intermediate crude for November delivery was down by $0.60 or 0.96 percent at $61.77 per barrel.

In the Asian trading today, the Canadian dollar fell to nearly a 1-year low of 0.9231 against the Australian dollar, from yesterday's closing value of 0.9215. The loonie may test support near the 0.93 region.

Against the U.S. dollar, the yen and the euro, the loonie slipped to 1.3949, 105.44 and 1.6376 from Wednesday's closing quotes of 1.3935, 105.54 and 1.6345, respectively. If the loonie extends its downtrend, it is likely to find support around 1.40 against the greenback, 104.00 against the yen and 1.65 against the euro.

Looking ahead, Eurozone unemployment rate for August is due to be released at 5:00 am ET in the European session.

In the New York session, U.S. factory orders for August and U.S. Fed's balance sheet are slated for release.

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