Canadian Dollar Advances As European Stocks, Oil Prices Rise

06:35, 21st October 2014

(RTTNews) - The Canadian dollar strengthened against its major rivals in European deals on Tuesday, amid risk appetite and an increase in oil prices after better-than-expected China GDP data for the third quarter.

Crude for December delivery added $0.67 to $82.58 per barrel.

Official data showed that China's gross domestic product expanded 7.3 percent on year in the third quarter of 2014, topping expectations for an increase of 7.2 percent.

On an annualized quarterly basis, GDP was up 1.9 percent - also beating forecasts for 1.8 percent.

China's industrial production also increased in September, reaching 8.0 percent.

European stocks are trading higher following solid earnings report. Swiss biopharmaceutical co. Actelion reported a surge in its profit for the first nine months of fiscal 2014 and lifted its full year core earnings growth view.

Swedbank's shares rose after it said that its third quarter net profit increased from last year, while announcing a 5.5 percent staff cut.

The American Petroleum Institute will release its supply data late Tuesday, while the U.S. Energy Information Administration's weekly official inventory report is due Wednesday.

In the Asian session, the loonie traded higher against its major opponents, except the yen.

The loonie advanced to a 2-day high of 1.1243 against the greenback, off early multi-day low of 1.1295. The next possible resistance for the loonie is seen around the 1.11 zone.

Recovering from early 2-day low of 94.34 against the yen and a 6-day low of 0.9946 against the aussie, the loonie edged up to 94.87 and 0.9895, respectively. If the loonie extends rise, it may find resistance around 95.5 against the yen and 0.985 against the aussie.

The loonie that ended yesterday's deals at 1.4441 against the euro ticked up to 1.4366. The loonie may possibly find resistance around the 1.425 region.

Looking ahead, U.S. existing home sales for September are due at 10:00 am ET.