CANADA FX DEBT-C$ edges lower on China data

Mon Mar 12, 2012 8:53am EDT
 
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* C$ at C$0.9920 vs US$, or $1.0081

* Weak China export data weighs

* Bond prices higher across the curve

By Jon Cook

TORONTO, March 12 (Reuters) - The Canadian dollar eased back against its U.S. counterpart on Monday as weak Chinese export data weighed on commodities and trading thinned out at the start of spring break holidays and ahead of Tuesday's U.S. Federal Reserve meeting.

Data released over the weekend by China, showed the commodity-consuming giant posted its largest trade deficit in at least a decade, fanning concerns about the world's second largest economy.

"Without that (China data) then perhaps the Canadian dollar would be a little stronger," said Jeremy Stretch, head of foreign exchange strategy at CIBC World Markets in London. "It's a pretty lackluster session."

The China news took some of the shine off last week's robust U.S. outlook, as the American economy added more than 200,000 workers for a third straight month in February, a further signal of recovery in Canada's biggest trading partner.

At 8:15 a.m. (1215 GMT), the Canadian dollar stood at C$0.9920 versus the U.S. dollar, or $1.0081, down slightly from Friday's North American session close at C$0.9909 versus the U.S. dollar, or $1.0092.   Continued...