RPT-CANADA FX DEBT-C$ falls as commodities stumble, eyes on data

Tue Sep 28, 2010 8:42am EDT
 
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 * C$ lower at 96.81 U.S. cents
 * Bond prices lower, follow U.S. Treasuries
 (Repeats to additional subscribers without changes)
 By Jennifer Kwan
 TORONTO, Sept 28 (Reuters) - Canada's dollar fell against
its U.S. counterpart on Tuesday, pressured by weak commodity
prices and largely flat equity moves, remaining in a narrow
range as investors looked for more guidance from economic
data.
 At 8:25 a.m. (1225 GMT), the Canadian dollar CAD=D3 was
at C$1.0330 to the U.S. dollar, or 96.81 U.S. cents, down from
Monday's finish at C$1.0283 to the U.S. dollar, or 97.25 U.S.
cents.
 "It is some broad based U.S. dollar strength and weaker
equities playing a role. Technically, it also seems the market
is pretty much rangebound but that range is starting to drift
higher with now C$1.03 at the bottom," said Matthew Strauss,
senior currency strategist at RBC Capital Markets.
 Also weighing on the currency was oil, a key Canadian
export, which fell below $76 a barrel ahead of U.S. reports
expected to show fuel stockpiles. Gold and base metals prices
were also weaker. [O/R] [GOL/]
 "Since the start of the week we haven't had any significant
development providing guidance for the market," he added. "The
market is still looking for new direction."
 Strauss said the underlying theme pervading markets is
uncertainty about the strength of the global recovery in
2011.
 The most recent areas of focus include any future
quantitative easing by the Federal Reserve, even in a modest
form, as well as concerns about euro zone banks and some
countries' debts. [FRX/] [MKTS/GLOB]
 Strauss said technical levels to watch for on Tuesday
included the day's key ranges of around C$1.0299 to the U.S.
dollar and C$1.0362.
 Canadian bond prices tracked U.S. Treasuries lower where
prices eased after a Wall Street Journal report said the
Federal Reserve was mulling a smaller and more open-ended
bond-buying programme than in 2009. [US/]
 The two-year bond was slipped 4 Canadian cents to yield
1.439 percent, while the 10-year bond edged 7 Canadian cents
lower to yield 2.810 percent.
 (Reporting by Jennifer Kwan; Editing by Theodore d'Afflisio)