* C$ falls to C$1.0039 vs US$, or 99.61 U.S. cents
* Bond prices little changed across the curve
* U.S. Q4 GDP misses expectations
By Claire Sibonney
TORONTO, Jan 30 (Reuters) - The Canadian dollar eased slightly to a session low against its U.S. counterpart on Wednesday after data showed the U.S. economy unexpectedly contracted in the fourth quarter, suffering its first decline since the 2007-09 recession.
The currency hit C$1.0039 against the greenback, or 99.61 U.S. cents. It had traded at C$1.0029, or 99.71, immediately before the release.
“The net effect (of the U.S. GDP data) has been remarkably limited actually on currencies generally,” said Adam Cole, global head of FX strategy at RBC Capital Markets in London.
“People are generally putting the softness to GDP down to temporary factors, in particular government spending, and therefore not reading a great deal into the fact that it had a minus number in front of it.”
U.S. gross domestic product fell at a 0.1 percent annual rate after growing at a 3.1 percent clip in the third quarter, as businesses scaled back on restocking and government spending plunged.
The data was published as officials at the Federal Reserve wrap-up a two-day policy meeting. The report will likely provide ammunition for officials at the U.S. central bank to stay on their ultra-accommodative policy stance.
Further easing is expected by many to hurt the U.S. dollar as the program increases the money supply.
At 9:02 a.m. (1402 GMT), the Canadian dollar stood at C$1.0033 versus the U.S. dollar, or 99.67 U.S. cents, down modestly from Tuesday’s close at C$1.0024, or 99.76 U.S. cents.
The Canadian currency has recently settled into a fresh range between C$1.01 and equal value with the U.S. dollar after weakening sharply last week on a dovish shift in the Bank of Canada’s stance.
Canadian bond prices were little changed. The two-year bond was up half a Canadian cent to yield 1.162 percent, while the benchmark 10-year bond was flat to yield 1.998 percent.