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* C$ at C$1.0391 vs US$, or 96.24 U.S. cents * Strengthens briefly, then weakens after U.S. jobs data * U.S. employers add fewer jobs than expected in July * Canadian debt prices higher By Andrea Hopkins TORONTO, Aug 2 (Reuters) - The Canadian dollar whipsawed stronger, then weaker against the U.S. dollar on Friday after U.S. data showed employers added fewer jobs than expected in July, lessening expectations the U.S. Federal Reserve is about to scale back stimulus measures. U.S. payrolls rose by 162,000 in July, the Labor Department said on Friday, below the median forecast of 184,000 in a Reuters poll. The jobless rate fell to 7.4 percent. The figures sideswiped the greenback briefly, but the U.S. currency regained some ground as investors debated whether the economy is strong enough for the Fed to start winding down its stimulus program as early as September. "After the immediate reaction, the shock of the poor (jobs) number, markets have generally accepted that while a setback, it is not a mortal wound to the U.S. recovery and bias is still for a stronger U.S. dollar," said David Starkey, senior market analyst at Cambridge Mercantile Group in Toronto. At 9:37 a.m. EDT (1337 GMT), the Canadian dollar was at C$1.0391 versus the U.S. dollar, or 96.24 U.S. cents, down from Thursday's North American session close of C$1.0348 versus the U.S. dollar, or 96.64 U.S. cents. It had strengthened to a session high of C$1.0339 after the U.S. data sent the greenback reeling, but then settled weaker as investors digested the jobs report. "Obviously the headline number for nonfarm payrolls was a setback for dollar bulls, but the reality is we're still inside the framework that has been guiding dollar-CAD trading over the last few months. There is an ascending channel in place and we haven't significantly violated that," Starkey said. Government bond prices were stronger across the maturity curve. The two-year bond was up 6 Canadian cents to yield 1.160 percent, while the benchmark 10-year bond rose 34 Canadian cents to yield 2.509 percent.