CANADA FX DEBT-C$ trades near week's low point ahead of Fed
* C$ eases to C$0.9903 to the U.S. dollar, or $1.0098
* Bonds edge higher as risk aversion mounts
* Bernanke seen stopping short of pledge for QE3
* U.S. second-quarter growth revised down to 1 pct
By Ka Yan Ng
TORONTO, Aug 26 (Reuters) - The Canadian dollar slid against the U.S. currency on Friday morning ahead of a highly-anticipated speech from U.S. Federal Reserve Chairman Ben Bernanke later in the morning and after data showed the U.S. economy grew more slowly than expected in the second quarter.
The currency fell as low as C$0.9920 to the U.S. dollar, or $1.0081, matching its weakest level of the week, shortly after data showed the U.S. economy grew at annual rate of 1.0 percent in the quarter, a downward revision of its previous estimate of 1.3 percent. Economists had expected output growth to be revised down to 1.1 percent.
Business inventories and exports were less robust, but consumer spending was revised up.
Easing oil prices also weighed on the currency.
"Most are waiting for what Chairman Bernanke will or won't say. Even though we have had some currency moves, most are still well within their recent ranges," said Camilla Sutton, chief currency strategist at Scotia Capital.
The build-up to Bernanke's speech kept the Canadian currency locked in a tight range this week.
At 9:24 a.m. (1324 GMT), the Canadian currency CAD=D4 was at C$0.9903 to the U.S. dollar, or $1.0098, down from C$0.9868 to the U.S. dollar, or $1.0134, at Thursday's close.
While investors were optimistic that Bernanke, at the annual Jackson Hole, Wyoming, retreat for central bankers, would signal in his speech that the Fed is committed to take further measures to support the U.S. economy if necessary, many expect he is unlikely to signal a fresh bond-buying round.
His opening remarks at 10 a.m. (1400 GMT) will be widely watched by financial markets hoping for some indication the U.S. central bank is prepared to step in to support an economic recovery that could be stalling. [ID:nN1E77O1LR]
Bernanke is seen stressing that the Fed still has tools to support the U.S. economy, whose health is critical for Canada.
Canadian government bond prices gained across the curve as risk aversion began to rise ahead of Bernanke's speech.
The two-year bond CA2YT=RR was up 2 Canadian cents to yield 0.989 percent, while the 10-year bond CA10YT=RR climbed 28 Canadian cents to yield 2.374 percent. (Reporting by Ka Yan Ng; editing by Peter Galloway)
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