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* C$ at C$1.0783 to the U.S. dollar, or 92.74 cents
* Rosier-than-expected housing data lifts currency
TORONTO, Sept 9 (Reuters) - The Canadian dollar CAD CAD=D3 nudged higher against the greenback on Wednesday after rosier-than-expected domestic housing starts data reassured investors about the pace of economic recovery.
Canadian housing starts rose 12.1 percent in August from July, beating expectations, largely lifted by big gains in construction of condos and apartments. [ID:nN09322143]
"It's further confirmation that a slow recovery is underway in the housing market," said Matthew Strauss, senior currency strategist at RBC Capital Markets.
Shortly after the data's release at 8:15 a.m. (1215 GMT), the Canadian dollar touch a session high of C$1.0759 to the U.S. dollar, or 92.95 cents, up from its pre-data level around C$1.0802 to the U.S. dollar, or 92.58 U.S. cents.
However, the data was only part of the reason behind the move.
"The data supported the move but the extent of the move was not all driven by the better-than-expected data. The fact that it broke through yesterday's close also played a role. There was some technical momentum," added Strauss.
At 8:42 a.m., the unit was at C$1.0783 to the U.S. dollar, or 92.74 cents, up slightly from C$1.0794, or 92.64 U.S. cents at Tuesday's close.
The currency was also supported by steady prices for gold XAU=[GOL/] and U.S. crude futures CLc1[O/R]. Canada is a major exporter of commodities, the prices of which often influence the value of its currency.
On Tuesday, the unit hit a five-week high against a faltering U.S. dollar, helped by rallies in commodity prices and equities.
Canadian bond prices were flat to lower, following the U.S. Treasury prices, which were steady ahead of an auction of 10-year notes later in the session. [ID:nL9719366]
($1=$1.08 Canadian) (Reporting by Jennifer Kwan; Editing by Jeffrey Hodgson)