CANADA FX DEBT-C$ slips in quiet trading as US$ firms; China disappoints
* Canadian dollar at C$1.3145 or 76.07 U.S. cents * Bond prices mostly lower across the maturity curve TORONTO, Aug 10 (Reuters) - The Canadian dollar was modestly softer against the greenback in relatively quiet trading on Monday, as the U.S. dollar tested four-month highs against a basket of currencies. This follows Friday's loonie retreat after U.S. and Canadian labor reports for July that left the two country's divergent monetary policy paths on track. The Canadian dollar also tracked some of the weakness by its fellow commodity counterparts. The Australian and New Zealand dollars, commodity-related currencies vulnerable to news out of China, lost some 1 percent following the latest weak economic data out of that country, among the world's biggest resource consumers. * At 9:30 a.m. ET (1330 GMT), the Canadian dollar was trading at C$1.3145 to the greenback, or 76.07 U.S. cents, a touch weaker than the Bank of Canada's official close of C$1.3133, or 76.14 U.S. cents. * The Canadian dollar has traded between C$1.312 and C$1.3182 so far in the session. * There were no major Canadian or U.S. economic data released on Monday. . * China is facing increasing pressure to further stimulate is economy following disappointing data over the weekend that showed producer prices in July, which had been sliding continuously for more than three years, hit their lowest point since late 2009, while exports, hurt by softer global demand and a strong yuan policy, tumbled 8.3 percent last month. * The Canadian dollar is expected to trade between C$1.3115 and C$1.3185 against the U.S. dollar on Monday, according to RBC Capital Markets. * Canadian government bond prices were mostly lower across the maturity curve, with the two-year price down 2.5 Canadian cents to yield 0.451 percent and the benchmark 10-year falling 24 Canadian cents to yield 1.445 percent. * The Canada-U.S. two-year bond spread narrowed to -27.4 basis points, while the 10-year spread widened to -76.1 basis points. (Reporting by Solarina Ho Editing by W Simon)
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