CANADA FX-C$ buoyed by Chinese data, Bernanke in focus

Wed Jul 13, 2011 9:27am EDT
 
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   * C$ at C$0.9624 to U.S. dollar, or $1.0390
 * Chinese economy grew faster than expected
 * Fed's Bernanke's testimony eyed
 TORONTO, July 13 (Reuters) - The Canadian dollar
strengthened against its U.S. counterpart on Wednesday as
supportive Chinese data soothed investors jittery over the
possible global impact of the euro zone debt crisis.
 China's economy grew faster than expected in the second
quarter, easing fears of a hard landing and strengthening
Beijing's resolve to fight persistently high inflation.
[ID:nL3E7ID0AS]
 "China is certainly bolstering sentiment," said David Watt,
a senior fixed income and currency strategist with RBC Capital
Markets.
 "But the market was already poised, it was already having a
sense that things had gone too far the other way over the past
few days. The stage was set for the markets to have a little
bit of a rally."
 At 9:18 a.m. (1318 GMT), the currency CAD=D4 stood at
C$0.9624 to the U.S. dollar, or $1.0390, stronger than
Tuesday's North American finish at C$0.9662, or $1.0350.
 Watt expected the trading range to be tightly bound between
C$0.9620 and C$0.9650, barring any surprising comments from
Federal Reserve Chairman Ben Bernanke, who is testifying on
Capitol Hill later today. [ID:nN1E76B1XL]
 (Reporting by Solarina Ho; Editing by Jeffrey Hodgson)