CANADA FX DEBT-C$ steadies ahead of month's end
* C$ at C$0.9965 vs US$, or $1.0034 * Bond prices mostly lower By Jon Cook TORONTO, March 28 (Reuters) - Canada's resource-heavy currency was little changed against the U.S. dollar on Wednesday as investors processed the latest remarks from U.S. Federal Reserve Chairman Ben Bernanke and positioned their portfolios before the end of the month. Bernanke said on Tuesday it was too soon to declare victory in the U.S. economic recovery, warning against complacency in policy-making as the outlook brightens. His dovish-sounding comments knocked the U.S. dollar as they raised expectations for another round of monetary stimulus. "It was more of a boost for equity markets than anything in the currency world," said Shane Enright, executive director of foreign exchange trading at CIBC World Markets. "Canada is very comfortable between C$0.9850 (US$ 1.0150) and C$1.0050 (99.50 U.S. cents) and we're right in the middle of that right now." At 8:50 a.m. (1250 GMT), the Canadian dollar stood at C$0.9965 versus the U.S. currency, or $1.0034, down slightly from Tuesday's close at C$0.9949 versus the greenback, or $1.0051. Enright said growth-reliant currencies like Canada's have been hurt by recent soft data on Chinese manufacturing and a reduction in the annual economic growth outlook to below 8 percent by the world's top commodities consumer. "You're seeing a little bit of weakening for Canada against the European currencies as commodity currencies fall out of vogue," he said. The quiet session had dealers eyeing U.S. durable goods data on Wednesday that showed orders rose 2.2 percent last month, below expectations of a 3.0 percent increase. A drop in Brent crude oil prices, which fell 1 percent to $124.27 a barrel, also dragged on the Canadian dollar. Across the Atlantic, European debt fears showed signs of resurgence as Spain and the European Commission denied media reports on Tuesday that Brussels had told the Madrid government to take a bailout to refinance the country's troubled banks. Euro zone debt concerns have abated recently with the latest injection of cheap liquidity by the European Central Bank and Greece having avoided a chaotic default. Canadian bond prices were mostly lower, reflecting some risk aversion by investors. Canada's two-year bond dipped 2 Canadian cents to yield 1.222 percent. The 10-year bond fell 10 Canadian cents to yield 2.138 percent.
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