CANADA FX DEBT-C$ steadies after hitting six-month low
* Canadian dollar at C$1.1199 or 89.29 U.S. cents * Bond prices higher across the maturity curve By Leah Schnurr TORONTO, Oct 1 (Reuters) - The Canadian dollar was little changed against the greenback on Wednesday, steadying after it hit a more than six-month low overnight as investors watched to see whether it will take a run at its low for the year, near C$1.13. The loonie came into the first trading day of the fourth quarter sporting a loss of 4.7 percent over the span of the last three months, making for its worst quarter in three years. While the Canadian dollar has had a number of factors working against it, the main driver of its fall continues to be the rally in the greenback as the U.S. economy picks up and the U.S. Federal Reserve moves closer to raising interest rates. Having breached resistance at C$1.12 on Tuesday, analysts say focus is turning to whether the loonie will revisit 2014's low of C$1.1279, set in March. "Everyone is looking for that as a level that will either provide some resistance or a level that once we're through, really opens up another leg higher" for the U.S. dollar against the loonie, said Camilla Sutton, chief currency strategist at Scotiabank in Toronto. The Canadian dollar was at C$1.1199 to the greenback, or 89.29 U.S. cents, nearly flat with Tuesday's close of C$1.12, or 89.29 U.S. cents. It hit a session low of C$1.1223 in overnight trade, its lowest level since late March. The market has little in the way of domestic factors to trade off, with the economic calendar light until Friday's trade balance data for August. The U.S. unemployment report, which is also due Friday, also will be closely watched. While a strong jobs report would support the U.S. dollar continuing to move higher, a disappointing report would make it difficult for traders to look past two weak labor reports in a row, Sutton said. The previous U.S. jobs report had showed employers hired the fewest number of workers in eight months in August. Canada will not release its September jobs report until the following week. Canadian government bond prices were higher across the maturity curve, with the two-year up 1-1/2 Canadian cents to yield 1.116 percent and the benchmark 10-year up 31 Canadian cents to yield 2.110 percent. (Editing by Peter Galloway)
© Thomson Reuters 2016 All rights reserved.