Investing.com – The U.S. dollar fell to more than one week lows against the Canadian dollar on Wednesday as investors awaited the Canadian government’s update on fiscal and economic conditions later in the day.
USD/CAD was down 0.32% to 1.1298 from 1.1333 late Tuesday, extending its pullback from the more than five year highs of 1.1465 hit last week.
Canadian Finance Minister Joe Oliver was due to present the fall fiscal and economic update later Wednesday, which was expected to show a small budget surplus.
In the budget earlier this year, the government said it expect to post a small deficit in the current year before posting a surplus of $6.4 billion for fiscal year 2015-16.
Demand for the Canadian dollar continued to be underpinned following Friday’s unexpectedly strong domestic employment report.
Oil prices remained lower ahead of the latest U.S. inventory data due out later in the day. Global oil prices have fallen sharply in recent months, pressure lower by the stronger greenback and concerns over ample supplies and slowing demand.
Crude oil is Canada’s largest export and the Canadian dollar is sensitive to fluctuations in oil prices.
Elsewhere, the loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD down 0.36% to 1.4088.
The US dollar index, which tracks the performance of the greenback against a basket of six major currencies, was little changed at 87.68, not far from Friday’s four-and-a-half year peaks of 88.31.