CANADA FX DEBT-C$ edges higher, bonds down as data eyed
* C$ largely rangebound, up at 98.26 U.S. cents
* Bonds slip across the curve
* Slew of U.S. data may determine market direction
TORONTO, Nov 24 (Reuters) - The Canadian dollar rose against the U.S. currency on Wednesday morning, tracking overseas gains in equity markets and slightly firmer commodity prices.
Prices in key resources such as crude oil and base metals advanced on supply concerns, offsetting a stronger U.S. dollar and rising risk aversion that reflected euro zone debt worries and fears of more clashes on the Korean Peninsula.
Overnight gains in some Asian equity markets were followed by recovering European stocks, helped by the German Ifo index's surge to a record high in November.
The upcoming U.S. Thanksgiving holiday on Thursday may also lighten liquidity across markets later in the session.
No Canadian data is due on Wednesday, leaving the Canadian dollar's direction likely determined by further developments in the euro zone debt woes and hostilities in Korea, as well as a slew of U.S. data.
U.S. indicators will include weekly jobless claims and October durable goods orders as well the Thomson Reuters/University of Michigan final November consumer sentiment index. New home sales for October are also due,
"If the U.S. data is a lot stronger than expected, you might see buying of North America so you could see the Canadian dollar do better," said Michael O'Neill, managing director at Knightsbridge Foreign Exchange.
"I still think the Canadian dollar is going to be on the defensive because of risk aversion going into the U.S. holidays."
At 8 a.m. (1300 GMT), the Canadian dollar CAD=D4 was at C$1.0177 to the U.S. dollar, or 98.26 U.S. cents, up from C$1.0231 to the U.S. dollar, or 97.74 U.S. cents, at Tuesday's close.
O'Neill said the currency has largely floated in a range lately and would need to break either side of the C$0.9981-C$1.0270 to the U.S. dollar to get more direction.
Canadian government bond prices were lower across the curve as U.S. equity futures suggested a firmer open ahead of the morning's economic data.
The two-year government of Canada bond CA2YT=RR was down 6 Canadian cents to yield 1.693 percent, while the 10-year bond CA10YT=RR slipped 5 Canadian cents to yield 3.114 percent.
(Reporting by Ka Yan Ng, Editing by Chizu Nomiyama)
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