CANADA FX DEBT-C$ hovers near parity but Greece weighs
* C$ at C$1.0030 or 99.70 U.S. cents
* Bonds slightly higher across the curve
By Claire Sibonney
TORONTO, April 27 (Reuters) - The Canadian dollar slipped just below parity against its U.S. counterpart on Tuesday, weighed down by lingering uncertainty over the euro zone's fiscal health, which hit risk-related currencies and assets such as oil and equities.
World stocks remained troubled by worries over Greece's debt after Germany demanded new austerity measures, offsetting strong U.S. earnings, and driving up the safe-haven U.S. dollar on contagion fears. [MKTS/GLOB]
In addition, oil slipped toward $83 a barrel, pulled lower by nagging concerns that Greece's economic trauma could have knock-on effects on the wider economy and demand for fuel. [O/R]
"All in all the biggest factor is what's transpiring in Europe and risk aversion," said Camilla Sutton, currency strategist at Scotia Capital.
"Should that settle down we'll see a stronger CAD and if it doesn't we'll see CAD weaken off further."
At 7:53 a.m. (1153 GMT), the Canadian dollar CAD= was at C$1.0030, or 99.70 U.S. cents, down from Monday's finish at C$1.0014 to the U.S. dollar, or 99.86 U.S. cents. Earlier, the currency hit a high of exactly C$1 to the U.S. dollar.
"The market is just trying to feel out where we're going to go from here and most of it has to do with risk aversion," added Sutton.
She said the day's key resistance level to spur buying of the Canadian currency is yesterday's high of C$0.9971, or $1.0029.
Selling pressure is eyed at the 21-day moving average of C$1.0049, or 99.51 U.S. cents.
"We made a brief attempt at there earlier today but failed."
Currency markets will also be focused on a parliamentary appearance by Bank of Canada Governor Mark Carney later in the day and an interest rate decision by the U.S. Federal Reserve on Wednesday.
In its Wednesday announcement, the U.S. central bank's Federal Open Market Committee (FOMC) is expected to hold rates near zero and repeat its vow to maintain an extended period of low rates, but investors remained wary. [ID:nN2298630]
Canada's central bank surprised markets last week by dropping its conditional pledge to keep its key rate at its current low level of 0.25 percent to the end of June, sending the Canadian dollar and domestic bond yields higher. [ID:nN20257669]
Currencies usually strengthen as interest rates rise as higher rates attract capital flows.
Canadian bond prices were slightly higher across the curve, following U.S. Treasuries which rose as investors expect steady interest rates in the world's biggest economy. [US/]
The two-year Canadian government bond CA2YT=RR was up half a Canadian cent at C$99.15 to yield 1.973 percent, while the 10-year bond CA10YT=RR was up 14 Canadian cents to C$100.70 to yield 3.659 percent. (Reporting by Claire Sibonney; Editing by Chizu Nomiyama)
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