CANADA FX DEBT-C$ stumbles as Chinese data hits commodities

Mon Apr 15, 2013 9:23am EDT
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* C$ at C$1.0197 vs US$, or 98.07 U.S. cents
    * China growth below economists' expectations
    * BMO sees C$ between C$1.0170 and C$1.0240 on Monday
    * Bond prices rise across curve

    By Solarina Ho
    TORONTO, April 15 (Reuters) - The Canadian dollar was
sharply weaker against the greenback on Monday, dragged lower by
commodity prices that were hit by  disappointing data out of
    Gold, silver, copper and oil prices were all slammed after
data showed China's recovery unexpectedly stumbled in the first
three months of 2013, with an annual growth rate of 7.7 percent
versus economists' expectations of 8 percent growth.
    "Obviously the key theme was the soft Chinese data and the
impact it had on commodities and commodity currencies. Not
surprisingly, Canada has weakened off a little bit," said Matt
Perrier, a director of foreign exchange sales at BMO Capital
    "We're seeing a small reprieve here as the North American
session opens ... a minor rebound in commodities off their lows
and you've seen coincidentally a rebound in the Canadian dollar
back below C$1.02."
    At 9:03 a.m. (1403 GMT), the Canadian dollar was
trading at C$1.0197 versus the U.S. dollar, or 98.07 U.S. cents,
firmly lower than Friday's finish at C$1.0138, or 98.64 U.S.
cents. Earlier in the session, it had touched C$1.0226, or 97.79
U.S. cents, it's weakest level in a week.
    Perrier expects the currency to trade between C$1.0170 and
C$1.0240 for the session as it tracks commodity moves.
    The price of Canadian government debt was higher across the
curve, with the two-year bond climbing 1.5 Canadian
cents to yield 0.945 percent and the benchmark 10-year bond
 rising 4 Canadian cents to yield 1.733 percent.