Canadian Dollar Moves Up Amid Higher Oil Prices

The Canadian dollar was higher against its major opponents in the European session on Tuesday, as oil prices climbed following China's announcement to end quarantine measures for inbound travelers from January 8.

Crude for March delivery rose $0.44 to $84.94 per barrel.

The National Health Commission announced on Monday that China will scrap the quarantine rules for inbound travelers after nearly three years of restrictions.

Inbound travelers will be required to take a PCR test in the 48 hours before arriving in China, and restrictions on the number of international flights into the country will also be ended.

European stocks rose as the latest policy move from China triggered optimism over the reopening of the economy.

The CAD/JPY pair touched a 1-week high of 98.56. The loonie may test resistance around the 102.00 region, should it rallies again.

The loonie reached 1.4400 against the euro, its highest level since December 15. The currency is likely to challenge resistance around the 1.42 level.

The loonie climbed to 0.9117 against the aussie, off an early 5-day low of 0.9174. If the loonie rises further, it may locate resistance around the 0.885 level.

The loonie appreciated to 1.3525 against the greenback, setting nearly a 2-week high. The next possible resistance for the loonie is seen around the 1.33 level.

Looking ahead, U.S. wholesale inventories and advance goods trade balance for November, as well as Federal Housing finance agency's house price index and S&P/Case-Shiller home price index for October will be featured in the New York session.