CANADA FX DEBT-C$ supported by upbeat China data
* C$ ticks higher at 99.30 U.S. cents
* Canadian bond prices flat to lower
By Jennifer Kwan
TORONTO, Dec 13 (Reuters) - The Canadian dollar edged higher against its U.S. counterpart on Monday morning, lifted by a slightly weaker greenback and firm commodity prices on strong Chinese economic data.
Chinese industrial output in November beat expectations, while inflation climbed to a 28-month high. The upbeat data helped to send commodities higher. [ID:nBJL002113] [ID:nL3E6ND0F6] [O/R] [GOL/]
"Stronger economic news out of China got the ball rolling," said Jack Spitz, managing director of foreign exchange at National Bank Financial
"Where it's a pro-risk environment equities are trading stronger. The U.S. dollar itself is weaker along with the Japanese yen. So the Canadian dollar along with other commodity based currencies are all trading higher this morning."
At 7:50 a.m. (1250 GMT), the Canadian dollar CAD=D4 stood at C$1.0070 to the U.S. dollar, or 99.30 U.S. cents, up slightly from Friday's finish at C$1.0094 to the U.S. dollar, or 99.07 U.S. cents.
Spitz said markets will be focused on a speech by Bank of Canada Governor Mark Carney later on Monday. The speech is entitled "Reflections on the Economic Outlook" and is expected to be followed by a press conference.
The central bank chief may offer hints on how deep into 2011 he will resume his stalled rate hike campaign given the economy's decelerating growth.
Canadian bond prices were largely flat to lower on Monday, tracking U.S. Treasuries whose prices edged down as investors sold the bonds in anticipation of higher growth and deeper deficits in the United States. [US/]
The two-year bond CA2YT=RR ticked 5 Canadian cents lower to yield 1.744 percent, while the 10-year bond CA10YT=RR was down 15 Canadian cents to yield 3.326 percent. (Reporting by Jennifer Kwan, Editing by Chizu Nomiyama)
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