CANADA FX DEBT-C$ bounces off 3-week low; GDP eyed

Thu Oct 29, 2009 7:45am EDT
 
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 * C$ hits 3-week low of C$1.0822
 * Data to show economy grew 0.1 pct in Aug
 * Bond prices stuck lower across curve
 By Frank Pingue
 TORONTO, Oct 29 (Reuters) - The Canadian dollar was steady
versus the U.S. currency early on Thursday after rallying off a
three-week low hit overnight as investors jockeyed for position
ahead of monthly domestic GDP data.
 The turnaround in the Canadian currency helped lift it off
an overnight low of C$1.0822 to the U.S. dollar, or 92.40 U.S.
cents, which marked its lowest level since Oct. 5.
 After many investors unloaded currencies considered risky
in favor of the greenback this week, Canada's dollar appeared
to return to favor ahead of data due shortly that could show
growth in the domestic economy.
 Gross domestic product data due at 8:30 a.m. (1230 GMT) is
expected to show Canada's economy grew 0.1 percent in August
after stagnating in July.
 "The market is waiting for the GDP numbers and ahead of it
we're seeing some risk appetite returning to the market," said
Matthew Strauss, senior currency strategist at RBC Capital
Markets.
 "But it's more a result of the sharp selloff that we've
seen during the last few days rather than indicative of the
market willing to turn around."
 At 7:35 a.m. (1135 GMT), the Canadian unit was at C$1.0777
to the U.S. dollar, or 92.79 U.S. cents, up from C$1.0785 to
the U.S. dollar, or 92.72 U.S. cents, at Wednesday's close.
 Domestic bond prices were down across the curve alongside a
similar move in the bigger U.S. Treasury market.
 (Editing by Chizu Nomiyama)