CANADA FX DEBT-C$ flat ahead of jobs data; parity push pauses

Thu Oct 7, 2010 9:33am EDT
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   * Little changed, down at 98.86 U.S. cents
 * Charge towards U.S. dollar parity stalls for now
 * Canadian bond prices climb across curve
 By Jennifer Kwan
 TORONTO, Oct 7 (Reuters) - Canada's dollar was little
changed against its U.S. counterpart on Thursday after
approaching parity to touch a 5-month high the day before, with
its trading range expected to remain tight ahead of key
employment data due on Friday.
 At 9:08 a.m. (1308 GMT), the Canadian dollar CAD=D4 was
at C$1.0115 to the U.S. dollar, or 98.86 U.S. cents, a hair
lower from Wednesday's finish at C$1.0107 to the U.S. dollar,
or 98.94 U.S. cents.
 Supporting the currency was the U.S. dollar's downtrend,
which gathered pace on Thursday as it slid to a 15-year low
versus the Japanese yen and an all-time low against the Swiss
franc, while the Australian dollar surged to a 27-year high
against the greenback. [FRX/]
 The greenback has been battered in recent sessions on
growing prospects of more money-printing by the U.S. Federal
Reserve to revive the U.S. economy.
 Oil jumped above $84 a barrel and gold rose to a record
high above $1,364 an ounce as investors bet that huge liquidity
being pumped by developed central banks would reflate the
global economy. [MKTS/GLOB]
 But the Canadian dollar was kept under pressure by broader
concerns about the health of the U.S. economy, Canada's biggest
trading partner, said Steve Butler, director of foreign
exchange trading at Scotia Capital.
 "It's a bit of a pullback after the move yesterday, but
Canada's hanging in pretty well," said Butler.
 "Canada still looks good, but I do think we'll continue to
be an underperformer just because of the worries over what's
going on with the U.S."
 On Wednesday, the Canadian dollar rose as high as C$1.0063
to the U.S. dollar, or 99.37 U.S. cents, its highest level
since April 30.
 In Canada, a report on Thursday showed the value of
Canadian building permits issued in August plunged 9.2 percent
from July, well below market expectations, on weakness in the
nonresidential sector. [ID:nN07]
 Still, the data "for today (was) not nearly as relevant,"
said Butler.
 "It's all about data tomorrow. We'll have to see what the
employment data looks like in Canada and the U.S. That's going
to be the main driver," he said.
 U.S. nonfarm payrolls were likely unchanged in September
[ID:nN05187700], while Canada is seen adding 10,000 jobs for
that month. [ID:nN01221816]
 Canadian bond prices mostly rose, in line with U.S.
Treasuries, which gained on expectations of another round of
quantitative easing by the U.S. central bank. [US/]
 The two-year bond CA2YT=RR rose 4 Canadian cents to yield
1.333 percent, while the 10-year bond CA10YT=RR climbed 10
Canadian cents to yield 2.739 percent.
 (Reporting by Jennifer Kwan; editing by Jeffrey Hodgson)