CANADA FX DEBT-C$ edges down, technical levels seen tested
* C$ edges down to C$0.9751 to the U.S. dollar, or $1.0255
* Key technical range eyed at C$0.9770-C$0.9800
* Bond prices little changed
By Ka Yan Ng
TORONTO, May 17 (Reuters) - Canada's dollar edged lower against the U.S. currency on Tuesday morning, eyeing another run at a key technical level that would retest its weakest in more than seven weeks.
The Canadian unit slipped as low as C$0.9771 against the U.S. currency in the previous session, its lowest since March 29, nearing a major technical area between C$0.9770-C$0.9800.
"That's an important range of levels," said Jack Spitz, managing director of foreign exchange at National Bank Financial. If broken, the currency would likely move into the C$0.98 area and weaken further against the U.S. currency.
"The market took a look at it yesterday and rejected it."
At 8:10 a.m. (1210 GMT), the Canadian dollar CAD=D4 was at C$0.9751 to the U.S. dollar, or $1.0255, down slightly from the North American session at C$0.9742 to the U.S. dollar, or $1.0265.
The currency was seen taking its cue from the euro, which pulled away from a seven-week low against the greenback, but remained vulnerable on the downside as investors looked at opportunities to trim bullish bets while uncertainty over Greek debt lingers. [ID:nLDE74G184] [FRX/]
"What we're seeing is Canada taking its cue...from global macro events and data. The euro itself continues to be vulnerable," said Spitz.
"Look at $1.40 in euro as a motivator for dollar/Canada price action."
Canadian securities transactions figures for March are seen having little impact on the currency on Tuesday. Instead, traders are looking ahead to two big reports -- inflation for the month of April and retail sales for March -- coming at the end of the week.
Canadian government bonds were little changed, mirroring U.S. Treasuries. Canada's two-year bond CA2YT=RR was up 1 Canadian cent to yield 1.662 percent, while the 10-year bond CA10YT=RR edged up 4 Canadian cents to yield 3.180 percent.
(Reporting by Ka Yan Ng, Editing by Chizu Nomiyama)
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