RTTN:Canadian Dollar Climbs Ahead Of U.S. Jobs Data
The Canadian dollar advanced against other major currencies in the European session on Friday, as traders await U.S. jobs data due today.
Economists expect an addition of 180,000 jobs in August following an increase of 162,000 jobs a month earlier. The jobless rate is forecast to stay unchanged at 7.4 percent.
The jobs data could help determine whether the Federal Reserve will start winding down its massing stimulus program in the September meeting. Crude prices for October delivery rose 1.05 percent or 1.14 cents to $108.37 per barrel at 6:37 am ET.
The U.S. President Barack Obama's proposal for military strike did not get enough support at the ongoing G20 Summit in St. Petersburg, where world leaders remain divided over the complex issue.
However, the U.S. Congress will vote upon Obama's proposal on next week.
The loonie advanced to 1.0451 against the greenback for the first time since August 21. The next upside target for the loonie lies around the 1.04 level.
The loonie recovered from an early low of 94.99 against the yen and spiked up to 95.45, a level not seen since August 2. If the loonie gains further, it may face resistance around the 96.4 level.
The Bank of Japan has upgraded its assessment of capital spending by companies amid further improvement in corporate profits, a monthly report from the central bank showed today.
The BoJ noted that "business fixed investment is starting to pick up as corporate profits have improved", upgrading its assessment from August when it said business investment has stopped weakening and is showing some signs of picking up.
The loonie firmed to a fresh 3-week high of 1.3702 against the euro, up from yesterday's close of 1.3781. The loonie may test resistance around the 1.36 level.
Germany's foreign trade surplus decreased more than forecast by economists in July amid a fall in exports, data from the Federal Statistical Office revealed today.
The trade surplus fell to EUR16.1 billion in July from EUR 17 billion in June. Economists had forecast a surplus of EUR 16.5 billion.
The loonie that ended Thursday's New York trading at 0.9592 against the aussie advanced to a 2-day high of 0.9556. Further uptrend could help the loonie to find resistance around the 0.948 level.
Construction activity in Australia contracted further in August, according to survey results published today by the Australian Industry Group and the Housing Industry Association.
AIG's Performance of Construction Index posted a 43.7 reading in August, down 0.4 points from the 44.1 reading in July.
The U.S. and Canadian jobs reports for August are due shortly.
Canada's Ivey PMI for August is set for release at 10:00 am ET.
