CORRECTED-CANADA FX DEBT-C$ pares gains as poor retail sales data weigh
(Corrects currency figure for Monday's close in sixth paragraph) * Canadian dollar at C$1.1019, or 90.75 U.S. cents * Bond prices higher across the maturity curve By Solarina Ho TORONTO, Sept 23 (Reuters) - The Canadian dollar was marginally stronger against its U.S. counterpart on Tuesday, but pared earlier session gains after data showed the country's July retail sales unexpectedly declined. The currency had strengthened overnight after the HSBC/Markit Flash China Purchasing Managers' Index (PMI) showed the manufacturing sector in the country, one of the world's biggest resource consumers, unexpectedly picked up momentum this month. In Canada, retail sales fell 0.1 percent from June's record level and after six months of gains, with strong auto sales failing to offset weakness in areas such as clothing and merchandise. "Commodity currencies were positive after the China data, the PMI, and then everything reversed when North America came in. Definitely after the Canadian retail sales number, which was worse than expected," said David Bradley, director of foreign exchange trading at Scotiabank. "There's a continued selloff, reversal of the overnight move in Aussie and Kiwi as well, so that helps add pressure onto the Canadian dollar also." At 9:22 a.m. (1322 GMT), the Canadian dollar was at C$1.1019 to the greenback, or 90.75 U.S. cents, firmer than Monday's close at C$1.1031, or 90.65 U.S. cents, but well off the C$1.0986, or 91.02 U.S. cents, touched earlier in the session. Except for its commodity counterparts and the U.S. dollar, the Canadian dollar was weaker against other major currencies. "In general, the U.S. dollar wants to continue to strengthen. That trend is firmly in place, but obviously when data or events come in, it might cause a slight reversal. You're going to see some profit-taking or some stop-losses go through," said Bradley. He added that geopolitical factors overnight also affected the market, including the United States and its Arab allies bombing Syria for the first time on Tuesday. Canadian government bond prices were higher across the maturity curve, with the two-year up 4.7 Canadian cents to yield 1.133 percent and the benchmark 10-year adding 19 Canadian cents to yield 2.205 percent. (Editing by Jeffrey Benkoe)
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