CANADA FX DEBT-C$ bounces after China rate cut fuels oil, greenback rally
* Canadian dollar at C$1.3214 or 75.68 U.S. cents * Bond prices lower across the maturity curve TORONTO, Aug 25 (Reuters) - The Canadian dollar firmed against its U.S. counterpart on Tuesday, as oil prices and the greenback rallied back from Monday's lows following an interest rate cut by China's central bank. The 25 basis point interest rate cut for the one-year benchmark lending rate by the People's Bank of China helped global markets rebound, with the price of crude, a key Canadian export, bouncing from hefty losses on Monday and the U.S. dollar jumping some 1 percent. Investors on Monday who fretted over out the global impact of slower Chinese growth sparked panic selling around the world. * At 9:09 a.m. EDT (1309 GMT), the Canadian dollar was trading at C$1.3214 to the greenback, or 75.68 U.S. cents, stronger than the Bank of Canada's official close of C$1.3262, or 75.40 U.S. cents, on Monday. * The loonie traded between C$1.3144 and C$1.3299 so far in the session. * Royal Bank of Canada raised its 1-3 month technical price target to C$1.35 following Monday's currency move that pushed the loonie to 11-year lows. * While oil was up more than 3 percent, prices were still close to 6-1/2 year lows, with U.S. crude still under $40 a barrel at $39.54. Brent crude added 3.33 percent to $44.11. * Bank of Canada Deputy Lawrence Schembri is scheduled to speak shortly after midday. There are no Major Canadian economic data due on Tuesday. * U.S. consumer confidence data for August is due at 10:00 a.m. ET. Economists polled by Reuters are forecasting 93.4. * Canadian government bond prices were lower across the maturity curve, with the two-year price down 6.5 Canadian cents to yield 0.355 percent and the benchmark 10-year falling 71 Canadian cents to yield 1.336 percent. * The Canada-U.S. two-year bond spread was -25.4 basis points, while the 10-year spread was -74.4 basis points. (Reporting by Solarina Ho Editing by W Simon)
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