3 Min Read
* C$ at C$1.1065 vs US$, or 90.38 U.S. cents * Bond prices fell across the maturity curve By Solarina Ho TORONTO, March 13 (Reuters) - The Canadian dollar strengthened against the greenback on Thursday, underpinned by stabilizing oil prices and tracking moves by other commodities-linked currencies, which had been shaken the day before by weaker-than-expected Chinese economic indicators. Oil prices held steady, aided by continuing fears that a dispute over Ukraine between Russia and Western powers could escalate and disrupt supplies. Copper prices recovered briefly from Wednesday's fall before resuming their slide as weak Chinese data spurred further concerns about the economic health of the world's second largest economy. "We strengthened in the overnight, but we seem to be treading water a little bit here," said David Tulk, chief Canada macro strategist at TD Securities. "We're going to have to wait until we get some Canadian data to get really determine sentiment one way or another." With little domestic data to drive direction, the Canadian dollar and its Australian and New Zealand counterparts had been under pressure earlier this week as commodity prices softened. Moves in the Canadian dollar are often be driven by sentiment over commodities, as much of the country's oil, mineral and food production are exported. At 9:57 a.m. (1357 GMT), the Canadian dollar was at C$1.1065 to the U.S. dollar, or 90.38 U.S. cents, stronger than Wednesday's close of C$1.1116 or 89.96 U.S. cents. The Canadian dollar briefly pared gains after U.S. data showed retail sales rebounded in February, while new applications for U.S. unemployment benefits touched a three-month low last week. Tulk said he expects the currency, which was outperforming most other major players except for the Australian and New Zealand dollars, to stick within a trading range of C$1.1054 and C$1.1122 through the day. The New Zealand dollar was bolstered by a rise in central bank rates and hints of more to come, while stronger-than-expected jobs data lifted the Aussie. Canadian government bond prices were lower across the maturity curve, with the two-year bond down 1 Canadian cent to yield 1.026 percent and the benchmark 10-year down 5 Canadian cents to yield 2.461 percent.