CANADA FX DEBT-C$ little changed after weak Chinese data
* Canadian dollar at C$1.0895 or 91.79 U.S. cents * Bond prices higher across the maturity curve By Leah Schnurr TORONTO, May 13 (Reuters) - The Canadian dollar was little changed against the greenback on Tuesday, held back by disappointing Chinese data, as a lack of domestic economic news left the currency searching for direction. Data overseas showed China's economic activity was weak across the board last month, with figures from output to investment and consumption missing market expectations. The Canadian dollar is often sensitive to data out of China, the world's second-largest economy and a major consumer of natural resources. "That again signals that growth is slowing in the region," said Scott Smith, senior market analyst at Cambridge Mercantile Group in Calgary. "What policymakers have said is essentially coming true, where growth is transitioning to more of a sustainable trajectory and we're not going to see that credit-fueled reflation in the economy." At home, the economic calendar is light this week, with no major reports expected until March manufacturing sales on Thursday. The Canadian dollar was at C$1.0895 to the greenback, or 91.79 U.S. cents, a tad stronger than Monday's close of C$1.0897, or 91.77 U.S. cents. The euro was lower against the Canadian dollar after sources said the German central bank is ready to support European Central Bank policy action if it is needed. Earlier, The Wall Street Journal, citing a person familiar with the matter, reported the Bundesbank was willing to back an array of stimulus measures from the ECB next month. The euro was at C$1.4946. The report gave strength to the U.S. dollar, which also kept pressure on the Canadian dollar against the greenback. After whip-saw trading sent the loonie through some key technical barriers last week, Smith sees the C$1.09 level acting as a pivot for the currency. For the session, the Canadian dollar is likely to trade in a tight range between C$1.0940 and C$1.0860, he said. Canadian government bond prices were higher across the maturity curve, with the two-year up 1-1/2 Canadian cents to yield 1.065 percent and the benchmark 10-year up 30 Canadian cents to yield 2.371 percent. (Editing by Nick Zieminski)
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