CANADA FX DEBT-C$ little changed, Spain hopes support

Tue Oct 2, 2012 9:58am EDT
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* C$ trades flat at C$0.9827, or $1.0176
    * Hopes for Spain offer some support
    * Traders await employment data, central bank decisions
    * Currency gains against Australia dollar after rate cut

    By Alastair Sharp
    TORONTO, Oct 2 (Reuters) - The Canadian dollar was little
changed against the U.S. currency on Tuesday, with hopes that
Spain might soon accept a euro zone bailout offering some
support as traders looked ahead to key North American employment
data due on Friday.
    Canadian and U.S. stocks and some commodities also firmed as
investors decided news on Spain's bailout plans was encouraging
enough to warrant fresh buying.  
    "There's a lot of stuff ahead and not much today, so people
will probably sit on their hands for now," said Benjamin
Reitzes, senior economist and foreign exchange strategist at BMO
Capital Markets.
    At 9:31 a.m. (1331 GMT), the Canadian dollar was at
C$0.9827, or $1.0176, unchanged from its close on Monday.
    Reitzes said the Canadian dollar would find support around
C$0.9874 and the Sept. 5 session low of C$0.9920. He saw
resistance at last week's high of C$0.9781.
    The Canadian dollar firmed against Australia's currency
after the Reserve Bank of Australia cut interest rates to a
three-year trough and left the door ajar for more easing.
    It climbed as high as C$1.0103 to the Australian dollar, or
98.98 Australian cents, its strongest level since Sept. 11.
    Both Canada and the United States release monthly employment
figures on Friday, while the European and Japanese central banks
both make interest rate decisions this week. 
    On Wednesday, payrolls processor ADP issues its U.S. jobs
data and the Institute for Supply Management publishes data
about non-manufacturing sectors of the U.S. economy.     
    The European Central Bank will decide on Thursday whether to
hold rates or cut them to offer further support for stumbling
euro zone countries. 
    The Bank of Japan is expected to keep monetary settings
unchanged on Friday even as weakening Asian manufacturing
activity clouds the outlook. The bank is seen preferring to
spend some time reviewing the effect of its policy loosening
last month.