Canadian Dollar Falls Amid Canada Political Crises, Crude Oil Prices Drop

(RTTNews) - The Canadian dollar weakened against other major currencies in the Asian session on Tuesday amid the political crises in Canada, low oil prices and a dovish Bank of Canada outlook.

Canadian Finance Minister Chrystia Freeland made her resignation from Prime Minister Justin Trudeau's cabinet official, adds a layer of political uncertainty.

Crude oil prices fell amid concerns about the outlook for demand after weak economic data from China and the threat of tariffs. West Texas Intermediate Crude oil futures for January closed down $0.58 at $70.71 a barrel.

The aggressive policy easing and dovish outlook of the Bank of Canada (BoC), also weighed down the currency.

Asian stocks markets also traded lower, as traders remain concerned about the ongoing economic uncertainties in China amid lack of adequate financial policy measures. They also seemed reluctant to make significant moves ahead of the U.S. Fed's upcoming interest rate decision tomorrow.

The Bank of Japan and the Bank of England are also scheduled to make their policy announcements on Thursday.

In the Asian trading today, the Canadian dollar falls to nearly a 1-1/2-month low of 1.4994 against the euro and a 5-day low of 0.9081 against the Australian dollar, from yesterday's closing quotes if 1.4968 and 0.9071, respectively. If the loonie extends its downtrend, it is likely to find support around 1.52 against the euro and 0.92 against the aussie.

Against the U.S. dollar and the yen, the loonie edged down to 1.4266 and 107.98 from Monday's closing quotes of 1.4242 and 108.23, respectively. The loonie may test support near 1.43 against the greenback and 105.00 against the yen.

Looking ahead, the Office for National Statistics releases U.K. unemployment data for October at 2:00 am ET in the pre-European session. The unemployment rate is forecast to remain unchanged at 4.3 percent in three months to October.

In the European session, the State Secretariat for Economic Affairs Swiss Winter economic forecast, the ifo Institute Germany's business confidence survey data for December and Eurozone foreign trade data for October are slated for release.

In the New York session, Canada CPI data for November, new housing price index for November, U.S. retail sales data for November, industrial and manufacturing production data for November, business inventories for October and U.S. NAHB housing market index for December are set to be released.