CANADA FX DEBT-C$ weakens after China data, domestic retail sales
* Canadian dollar at C$1.1047 or 90.52 U.S. cents * Bond prices higher across the maturity curve By Leah Schnurr TORONTO, April 23 (Reuters) - The Canadian dollar weakened modestly against the greenback on Wednesday as more signs of slower economic growth in China and downward revisions to domestic retail sales left the currency churning in its recent range. Data showed Chinese factory activity shrank for the fourth month in a row in April, though the pace of contraction eased slightly compared to the month before. The loonie is often sensitive to developments in China, which is the world's second-largest economy and a major consumer of natural resources. "The Chinese data overnight continues to signal that there's going to be issues with China hitting their growth targets if the government doesn't look to maybe step in to do some more to support the recovery," said Scott Smith, senior market analyst at Cambridge Mercantile Group in Calgary. Economic data at home was not able to provide support for the loonie as Canadian retail sales grew more than expected in February but January's figures were revised lower. Recent stronger Canadian economic data had helped the Canadian dollar bounce back from a 4-1/2-year low hit in March, but the loonie has lost traction in the last couple weeks as analysts weigh the modest economic improvement against a central bank that is still neutral in its monetary policy. "We're seeing a little bit of drifting, there is still in the market a Canadian dollar bearish sentiment on an overall basis," said Smith. "To some extent, we're around this pivot right now at the C$1.10 figure (and) we're waiting for the next move on where it will go." The Canadian dollar was at C$1.1047 to the greenback, or 90.52 U.S. cents, weaker than Tuesday's close of C$1.1028, or 90.68 U.S. cents. For the session, the loonie is likely to find support around C$1.1060 to C$1.1070 area, while C$1.10 will likely cap any strength, said Smith. Canadian government bond prices were higher across the maturity curve, with the two-year up 1 Canadian cent to yield 1.061 percent and the benchmark 10-year up 11 Canadian cents to yield 2.429 percent. (Editing by Meredith Mazzilli)
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