CANADA FX DEBT-C$ near 4-week low as global growth outlook dims
* C$ at C$0.9883, or $1.0118 * At weakest level since Sept. 6 * Hurt by signs global economy faltering By Alastair Sharp TORONTO, Oct 3 (Reuters) - The Canadian dollar hit its weakest level in nearly four weeks against its U.S. counterpart on Wednesday, hurt by lower commodity prices and signs out of China and Europe that the global economic slowdown may be worsening. The Canadian currency was also pulled lower by further signs that Australia - another resource-reliant economy - was suffering the ill-effects of lower demand. By 9:09 a.m. (1309 GMT) the Canadian dollar was at C$0.9883, or $1.0118, its weakest level in almost a month. "Some soft data out of Australia last night, and some weak Chinese PMI data has pulled the commodity currencies lower," said Matt Perrier, director of foreign exchange sales at Bank of Montreal. "Canada's been weakening off in a much more moderate ratio, but trading in tandem with the Aussie overnight," Perrier said. China's official purchasing managers' index for the services sector fell to 53.7 in September from 56.3 in August as growth in the manufacturing industry stabilized at a slower pace. Australia's trade deficit blew out to its widest in three-and-a-half years in August as falling prices for iron ore and coal ate into export earnings. In Europe, dwindling new orders and faster layoffs marked a worsening decline for euro zone companies last month, according to business surveys that dent hopes the economy will return to growth before 2013. Still, a Reuters poll published on Wednesday showed Canada's dollar is expected to strengthen in the coming year, boosted by a hawkish Bank of Canada and the U.S. Federal Reserve's efforts to bolster the recovery with fresh stimulus. The Canadian currency is seen trading at C$0.98 to the greenback, or $1.0204 one, three, six and 12 months from now, according to the median forecast of 56 global foreign exchange strategists.
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