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The Bank of Canada is scheduled to announce its interest rate decision at 9:00 am ET today. Analysts expect the central bank to cut rates by 50 bps, bringing its key overnight lending rate to 3.00% as Canada`s annual inflation dropped to its slowest pace of growth in over a year.

A report released last week showed that the consumer prices rose 0.4% in March, matching the increase reported for February. The increase came in slightly above economists` estimate of 0.3% increase.

The Canadian dollar traded lower against its Australian counterpart during early deals on Tuesday. At about 4:35 am ET, the loonie hit a 12-day low of 0.9528. The pair closed Monday`s deals at 0.9480. As of now, the pair is worth 0.9511.

The Australian Bureau of Statistics is scheduled to release nation`s CPI report at 9:30 pm Eastern Time, Tuesday. It is expected that the next figure of inflation will be above 4%, compared to the year-ended inflation rate of 3%. The central bank`s target range is 2 to 3 %.

The Canadian dollar that closed yesterday`s deals at 1.5997 against the euro, fell to a 5-day low of 1.6079 by about 5:25 am ET, Tuesday

The Canadian dollar weakened to a 4-day low of 102.06 against the Japanese yen by about 2:40 am ET, Tuesday. Thereafter, the pair has strengthened slightly and is now worth 102.37. The loonie-yen pair closed yesterday`s deals at 102.78.

A government report predicts that the size of Japan`s labor force will drop to 42.28 million in 2050 from the 2006 level of 66.57 million. It forecast that the labor force will drop to 55.84 million in 2030, but could see a lesser decline if steps are taken to promote the labor participation of all residents willing to work.

The Canadian dollar traded lower against its US counterpart during early deals on Tuesday. But after hitting a low of 1.0092 by about 2:45 am ET, the Canadian dollar reversed the direction but lost ground again shortly. The pair that traded at 1.0053, late Monday is now worth 1.0081.