Forex News: Canadian Dollar Weakens As Oil Prices Fall

Canadian Dollar Weakens As Oil Prices Fall

(RTTNews) - The Canadian dollar declined against its most major counterparts in the New York session on Wednesday amid lower oil prices, as U.S. crude oil inventories increased unexpectedly last week.

Crude oil inventories climbed by 3.6 million barrels last week after falling by 2.3 million barrels in the previous week, according to a report released by the Energy Information Administration. Economists had expected crude oil inventories to edge down by 0.3 million barrels.

Meanwhile, gasoline inventories fell by 1.4 million barrels and distillate fuel inventories decreased by 1.3 million barrels last week.

The prospect of higher supplies from OPEC+ further weighed on oil prices.

There are concerns about possible excess supply in the market after OPEC and its allies signaled plans to increase production next month.

The loonie fell to more than a 4-week low of 0.9092 against the aussie and more than a 4-year low of 1.5539 against the euro. The currency may challenge support around 0.92 against the aussie and 1.56 against the euro.

The loonie retreated to 103.02 against the yen, from an early 2-day high of 104.28. The currency is likely to locate support around the 101.00 level.

In contrast, the loonie advanced to a 6-day high of 1.4340 against the greenback. If the currency continues its uptrend, 1.38 is possibly seen as its next resistance level.

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