Canadian Dollar Advances Amid Rising Oil Prices

The Canadian dollar strengthened against most major rivals in European deals on Thursday, as oil prices advanced after Saudi Arabia resumed fresh air strikes targeting Iran-allied Houthi rebels in Yemen.

Crude for June delivery rose $0.27 to $56.42 per barrel.

The air strikes hit Houthi militant positions in three parts of Sanaa, destroying all three military compounds that were targeted. The attacks come despite Saudi's announcement earlier this week that the coalition would end their military campaign in Yemen.

Meanwhile, evidence of record U.S. crude supplies did little to change oil prices.

U.S. crude-oil stockpiles last week rose by 5.3 million barrels to 489 million barrels, the highest since 1982, the U.S. Energy Information Administration said Wednesday.

The loonie was trading mixed in the Asian session. While the loonie fell against the yen, it held steady against the greenback. Against the aussie and the euro, the loonie climbed.

The loonie edged up to 1.2213 against the greenback, off early low of 1.2268. The next possible resistance for the loonie is seen around the 1.21 zone.

The loonie advanced to 98.20 against the yen, its highest since April 17, and was up by 0.55 percent from its previous low of 97.66. On the upside, the loonie may locate resistance near the 99.00 mark.

Extending early rise, the loonie hit a 2-day high of 0.9436 against the aussie. This is an increase of 0.54 percent from yesterday's closing value of 0.9487. If the loonie continues advance, it may test resistance around the 0.93 region.

Meanwhile, the loonie was lower against the euro, with pair trading at 1.3147. This may be compared to an early 2-day high of 1.3078. At Wednesday's close, the pair was valued at 1.3121.

Eurozone private sector growth pulled back from March's 11-month high in April, flash survey data from Markit Economics showed.

The composite output index fell unexpectedly to 53.5 in April from 54 in March. The expected score was 54.4.

Looking ahead, U.S. new home sales data for March is due shortly.