The Canadian dollar was higher against its major counterparts in the Asian session on Tuesday, as tight oil supplies lifted oil prices.

Crude for August delivery rose $1.82 to 109.81 per barrel.

Russia's production is likely to drop following the European Union's agreement to ban most of its oil imports, but demand will remain high due to the post-pandemic recovery.

U.S. Treasury Secretary Janet Yellen said on Monday that the Biden administration is discussing about price caps or a price exception to enhance energy restrictions on Russia, which would push down its oil prices and depress Putin's revenues.

Investors looked forward to the testimony from Fed Chairman Jerome Powell for more signals on the central bank's commitment to bring inflation back to the 2 percent target.

Asian stock markets are trading mostly higher, following the positive cues from European markets overnight, with traders picking up stocks at a bargain after the recent sell-off in global markets.

The loonie advanced to 5-day highs of 0.8996 against the aussie and 1.2911 against the greenback, off its early lows of 0.9055 and 1.2986, respectively. The loonie is seen finding resistance around 0.87 against the aussie and 1.25 against the greenback.

The loonie appreciated to a 1-week high of 104.70 against the yen and a 4-day high of 1.3613 against the euro, coming off from its prior lows of 103.92 and 1.3662, respectively. The next possible resistance for the loonie is seen around 106.5 against the yen and 1.34 against the euro.

Looking ahead, Canada new housing price index for May and retail sales for April and U.S. existing home sales for May will be featured in the New York session.

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