Canadian Dollar Advances Amid Rising Oil Prices

The Canadian dollar strengthened against its major counterparts in European deals on Wednesday, as oil prices rose and traders await Canada wholesale sales for March, due shortly.

Crude for July delivery rose $0.58 to $58.57 a barrel.

The oil prices received support after data from American Petroleum Institute showed late Tuesday that crude inventories fell more-than-expected last week. API said the crude inventories to have fallen by 5.2 million barrels last week. The EIA will release official inventory data at 10:30 am ET.

The Statistics Canada will release Canada wholesale sales for March at 8:30 am ET. The sales are forecast to improve to 0.9 percent on a monthly basis, reversing from a 0.4 percent fall registered a month earlier.

The loonie was higher against the other major currencies, except the greenback in Asian trading.

Reversing from an early multi-week low of 1.2255 against the greenback, the loonie edged up to 1.2204. If the loonie extends rise, 1.20 is possibly seen as its next resistance level.

The loonie rallied to a 2-day high of 99.03 against the Japanese yen, from Tuesday's closing value of 98.64. Further uptrend may lead the loonie to a resistance around the 100.00 mark.

The loonie extended rise to a 2-day high of 0.9639 against the aussie, compared to yesterday's closing quote of 0.9675. Next key resistance for the loonie may be located around the 0.955 region.

The loonie was trading at 1.3582 against the euro, hovering at an early weekly high of 1.3549. The loonie is seen finding resistance near the 1.35 area.

Looking ahead, the Federal Reserve's minutes of its April 28-29 meeting will be out at 2:00 pm ET.