Forex News: Canadian Dollar Falls As Oil Prices Drop

Canadian Dollar Falls As Oil Prices Drop

(RTTNews) - The Canadian dollar dropped against its most major counterparts in the New York session on Wednesday, amid weak commodity prices.

WTI crude oil fell below $76 a barrel on concerns over receding demand in the United States and China.

The U.S. Energy Information Administration revised down its petroleum consumption forecast for this year.

The EIA now expects total U.S. petroleum consumption to drop by 300,000 barrels per day, instead of its previous forecast of a 100,000 bpd increase.

On the economic front, data from Statistics Canada showed the total value of building permits in Canada fell sharply by 6.1% from a month earlier to $11.2 billion in September, reversing an upwardly revised 4.3% growth in the prior month.

The loonie touched 1.4790 against the euro, its lowest level since August 31. The currency may find support around the 1.50 level.

The loonie fell to 1.3814 against the greenback, hitting a 6-day low. If the loonie drops further, it may find support around the 1.41 area.

The loonie retraced its early gains against the yen and was trading at 109.32. This may be compared to its previous 5-day low of 109.14. The next possible support for the loonie is seen around the 106.00 level.

In contrast, the loonie was higher against the aussie, at 0.8848. On the upside, 0.86 is likely seen as the next resistance level.

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