Canadian Dollar Drops As Oil Prices Fall On China Demand Worries
(RTTNews) - The Canadian dollar weakened against its most major counterparts in the European session on Tuesday amid falling oil prices, as weak PMI data from Asia and Europe revived worries about global growth and fuel demand.
Crude for September delivery dropped $0.21 to 81.59 per barrel.
The voluntary output cuts announced by Saudi Arabia and Russia have come into effect from today.
Traders also remain hopeful that Saudi Arabia will extend voluntary output cuts into September and tighten the global supply even further.
A private survey showed today that factory activity in China, the world's largest importer of crude, fell into contraction territory for the first time since April.
Another report showed that average new home prices in 100 Chinese cities fell for a third consecutive month in July.
The loonie dropped to a fresh 3-week low of 1.3295 against the greenback, reversing from an early 5-day high of 1.3179. The currency may locate support around the 1.34 level.
The loonie fell to 1.4575 against the euro and 107.51 against the yen, from an early 4-day high of 1.4493 and near a 4-week high of 108.10, respectively. The next possible support for the currency is seen around 1.47 against the euro and 105.00 against the yen.
In contrast, the loonie advanced against the aussie, reaching a 4-day high of 0.8784. Next key resistance for the currency may be located around the 0.86 level.
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