CANADA FX DEBT-C$ steady in early dealings

Wed Feb 9, 2011 8:20am EST
 
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 * C$ flat at $1.0054, bonds steady
 * Bernanke's congressional testimony may be key driver
 TORONTO, Feb 9 (Reuters) - Canada's dollar was flat against
the U.S. currency in a muted range on Wednesday, as market
players looked for a catalyst to push the currency one way or
another after falling more than a penny in the previous
session.
 In early dealings, the currency traded in a 24-tick trading
range between C$0.9932-C$0.9956 to the U.S. dollar, or
$1.0068-$1.0044 the day after it slid to a one-week low at
C$0.9978 versus the greenback, or $1.0022.
 "The Canadian dollar is going to have another quiet session
today due to a lack of data out of the U.S. and Canada, and
because it's going to consolidate yesterday's losses above
C$0.9910 in a tight C$0.9910-C$0.9990 range," said Michael
O'Neill, managing director at Knightsbridge Foreign Exchange.
 At 8:03 a.m. (1303 GMT), the Canadian dollar CAD=D4 was
at C$0.9946 to the U.S. dollar, or $1.0054, unchanged from
Tuesday's North American session close.
 With no data on Wednesday, investors may pay particular
attention to U.S. Federal Reserve Chairman Ben Bernanke's
testimony before Congress at 10 a.m. (1500 GMT).
 Oil prices, typically a driver of Canada's commodity-linked
currency, were slightly higher, providing a bit of support.
 Canadian government bonds were flat on Wednesday ahead of
an auction of C$3.2 billion in three-year bonds. [CA/AUC]
 The two-year bond CA2YT=RR fell 9 Canadian cents to yield
1.878 percent, while the 10-year bond CA10YT=RR dropped 42
Canadian cents to yield 3.487 percent.
 (Reporting by Ka Yan Ng; Editing by Kenneth Barry)