CANADA FX DEBT-C$ shrugs off China data to start week stronger

Mon Mar 11, 2013 9:10am EDT
 
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* C$ at C$1.0278 versus US$, or 97.30 U.S. cents
    * Weak Chinese data seen as distorted, limits effect
    * Dearth of Canadian data turns focus to U.S. numbers

    By Alastair Sharp
    TORONTO, March 11 (Reuters) - The Canadian dollar ticked
stronger versus the U.S. dollar on Monday, brushing off weak
Chinese data after the positive North American jobs report of
last week.
    China reported over the weekend that annual industrial
production for January and February combined was 9.9 percent -
the lowest level since October 2012 - while its consumer price
index had risen more than expected last month. 
    "Chinese data was the most significant thing so far we've
seen this week, but people clearly recognize it's very distorted
by the Lunar New Year. It hasn't really had much of an effect,"
said Greg Moore, a foreign exchange strategist at TD Securities.
    At 8:54 a.m. (1254 GMT) the Canadian dollar was
trading at C$1.0278 to the greenback, or 97.30 U.S. cents,
compared with C$1.0291, or 97.17 U.S. cents, at Friday's North
American close.
    The currency was given a shot in the arm on Friday by twin
employment reports that showed both Canada and the United
States, its main trading partner, adding a healthy number of new
jobs in February.
    With no domestic data in the pipeline and many traders away
from their desks during the March school break, movement may be
subdued this week.
    "It may fall to U.S. data to drive direction this week,"
Moore said, pointing to upcoming retail sales and inflation
readings.
    Without an external shock to prod it, the Canadian would
likely stay between C$1.0340 and C$1.0230, he said.
    Prices for Canadian government debt were flat to slightly
higher across the curve. The two-year bond was
unchanged to yield 0.984 percent, while the benchmark 10-year
bond added 5 Canadian cents to yield 1.929 percent.