CANADA FX DEBT-Canadian dollar dips against US$ on lower oil prices

Tue Apr 7, 2015 9:02am EDT
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* Canadian dollar at C$1.2509, or 79.94 U.S. cents
    * Bond prices mostly lower across the maturity curve

    TORONTO, April 7 (Reuters) - The Canadian dollar weakened
against a stronger greenback on Tuesday, as oil prices softened,
but the currency remained an outperformer against many of its
major counterparts.
    "It's holding up rather well is the bottom line, really ...
all the other major currencies have basically unwound the gains
they made after the (U.S.) payrolls report on Friday," said Adam
Cole, global head of FX strategy at RBC Capital Markets in
    With little economic news on the Canadian calendar until
jobs data on Friday, the direction of the U.S. dollar and
commodity prices are expected to be the main drivers for the
    * At 8:42 a.m. EDT (1242 GMT), the Canadian dollar 
was trading at C$1.2509 to the U.S. dollar, or 79.94 U.S. cents,
softer than the Bank of Canada's official close of C$$1.2478, or
80.14 U.S. cents.
    * The Canadian currency's strongest level of the session was
C$1.2455. Its weakest level was C$1.2522.
    * U.S. crude prices were down 1.28 percent to $51.47
a barrel, while Brent crude lost 0.81 percent to $57.65
a barrel as Iran and China discuss more oil sales. 
    * The Reserve Bank of Australia decided to hold interest
rates steady at 2.25 percent, surprising many investors.
    * The Canadian dollar is expected to trade between C$1.2450
and C$1.2530 against the U.S. dollar on Tuesday, according to
National Bank Financial Group.
    * Canadian government bond prices were mostly lower across
the maturity curve, with the price for the two-year 
issue down half a Canadian cent to yield 0.505 percent and the
benchmark 10-year falling 12 Canadian cents to yield
1.359 percent.
    * The Canada-U.S. two-year government bond spread is -1.5,
while the 10-year spread is -56.4.

 (Reporting by Solarina Ho; Editing by Paul Simao)