CANADA FX DEBT-C$ seesaws a day after disappointing trade data, as oil rallies

Wed Apr 6, 2016 9:59am EDT
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* Canadian dollar at C$1.3153, or 76.03 U.S. cents
    * Bond prices lower across the maturity curve

    TORONTO, April 6 (Reuters) - The Canadian dollar seesawed
against its U.S. counterpart on Wednesday as oil prices rose,
with the currency trading in a narrow range a day after
disappointing trade data dented optimism about the economy's
strength at the start of 2016.
    Crude oil futures rose as hopes for an agreement among
exporters to freeze output underpinned the market. U.S. crude
 prices were up 2.54 percent at $36.80 a barrel.    
    Data on Tuesday showed Canadian exports slumped in February
by the most in nearly seven years, raising doubt among some
analysts about the rebalancing of Canada's economy towards
non-energy exports. 
    That concern may be echoed by the Bank of Canada at its
April 13 interest rate announcement.
    At 9:51 a.m. EDT (1351 GMT), the Canadian dollar 
was trading at C$1.3153 to the greenback, or 76.03 U.S. cents,
slightly stronger than Tuesday's close of C$1.3157, or 76.01
U.S. cents.
    The currency's strongest level of the session was C$1.3124,
while its weakest level was C$1.3187.
    The currency has pulled back 2.2 percent since reaching its
strongest in 5-1/2 months at C$1.2859 last week. It touched on
Tuesday its weakest in more than a week at C$1.3219.
    Canadian government bond prices were lower across the
maturity curve in sympathy with Treasuries as oil prices rose
and after activity in China's service sector strengthened in
    The two-year price fell 1.5 Canadian cents to
yield 0.528 percent and the benchmark 10-year was
down 19 Canadian cents to yield 1.188 percent.
    The 10-year yield touched on Tuesday its lowest in five
weeks at 1.157 percent.
    The Ivey Purchasing Managers Index is due at 10 a.m. EDT (14
GMT). It is expected to show the pace of purchasing activity in
Canada picked up in March after slowing sharply the month

 (Reporting by Fergal Smith; Editing by Meredith Mazzilli)