CANADA FX DEBT-C$ tumbles to six-week low as data drives greenback higher
* Canadian dollar at C$1.2402 or 80.63 U.S. cents * Bond prices mostly higher across the maturity curve TORONTO, May 26 (Reuters) - The Canadian dollar slipped to its weakest level against the greenback in six weeks on Tuesday as oil prices fell and the U.S. dollar extended gains on upbeat economic data. The U.S. dollar rallied to a one-month high against a basket of currencies after a report showed a second-straight monthly increase in U.S. business investment spending plans in April. That report kicked off a jam-packed calendar of U.S. economic data this week that could have implications for the U.S. Federal Reserve policy. In Canada, the Bank of Canada will issue its latest interest rate decision on Wednesday, and first-quarter economic growth data will be released on Friday. * At 9:14 a.m. EDT (1314 GMT), the Canadian dollar was trading at C$1.2402 to the greenback, or 80.63 U.S. cents, nearly a cent weaker than the Bank of Canada's official close on Monday of C$1.2313, or 81.21 U.S. cents. * The currency touched C$1.2416 at one point, a level not seen since April 15. Its strongest level was C$1.2304, hit overnight. * In the United States, non-defense capital goods orders excluding aircraft, rose 1.0 percent last month after an upwardly revised 1.5 percent increase in March. A 2.5 percent drop in transportation equipment weighed on overall orders for durable goods, which slipped 0.5 percent last month. * Oil prices fell, pressured in part by the strong greenback and by the possibility that U.S. shale oil producers could increase drilling activity. U.S. crude prices were down 2.09 percent at $58.47, while Brent crude lost 1.71 percent to $64.4. * Canadian government bond prices were mostly higher across the maturity curve, with the two-year price up 1.5 Canadian cents to yield 0.666 percent and the benchmark 10-year rising 21 Canadian cents to yield 1.758 percent. * The Canada-U.S. two-year bond spread was 2.7 basis points, while the 10-year spread was -43.2 basis points. (Reporting by Solarina Ho; Editing by Peter Galloway)
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