Canadian Dollar Remains Weak Across The Board In Asian Deals On Tuesday, BoC Rate Decision In Focus, Tuesday, July 10, 2007 1:10:17 AM
The Canadian dollar remained weak against its major counterparts during the Asian deals on Tuesday. The major loonie-pairs trended down amid a lack of data from Japan but the NAB business confidence data for June and home loans data for May from Australia have helped the Canadian dollar change its direction against the Aussie recently.The Canadian currency that lost ground in the European session on Monday is now testing near term supports against its major counterparts ahead of June month housing starts and Bank of Canada rate decision expected later in the morning.
The Bank of Japan is also set to revise its monetary policy this week followed by a press conference by its governor Thoshihiko Fukui.
As a rate hike by the BoC and a hold decision by the BoJ have already been priced in, investors will be listening to the voice of both the central banks to have a clear picture regarding their future plans.
High commodity prices and strong housing market are estimated to remain a concern for the Canadians, while an upwardly moving global economy and growing concerns among country`s importers regarding a very cheap yen are anticipated to influence the Japanese.
The Canadian dollar weakened against the US currency during the early Asian deals on Tuesday. The pair that lost ground in the European session on Monday has moved to 1.0508 from 1.0453, lately. This is a level of support in the near term and if the pair moves further downward, 1.0550 can be the next likely target.
Against the Japanese yen, the Canadian dollar weakened during the Tokyo deals on Tuesday. The loonie had lost ground against its Japanese counterpart in the European session yesterday and has fallen to 117.27 from 118.18 since then. Further downside, 116.8 can likely be a target for the Canadian currency in the near term.
The Canadian dollar trended down against its Australian counterpart in the Asian session on Tuesday. Compared to yesterday`s European session high of 0.8972, the pair fetched as low as 0.9034 at about 8:40 pm ET. However, the Australian data followed has helped the loonie reverse a few of these losses and has been lately quoted around 0.9000 against the Aussie.
Against the euro, the Canadian dollar remained weak in the early Asian deals on Tuesday. Moving down from Monday`s European session high of 1.4247, the pair has lately reached a level of 1.4310. Downside, 1.4330 can likely be the nearest level of support for the loonie. Investors expect a rather quiet European session today.
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posted by Kalin Tasev @ 3:00 AM
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