CORRECTED-CANADA FX DEBT-C$ pares gains as poor retail sales data weigh

Tue Sep 23, 2014 4:53pm EDT
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(Corrects currency figure for Monday's close in sixth
    * Canadian dollar at C$1.1019, or 90.75 U.S. cents
    * Bond prices higher across the maturity curve

    By Solarina Ho
    TORONTO, Sept 23 (Reuters) - The Canadian dollar was
marginally stronger against its U.S. counterpart on Tuesday, but
pared earlier session gains after data showed the country's July
retail sales unexpectedly declined.
    The currency had strengthened overnight after the
HSBC/Markit Flash China Purchasing Managers' Index (PMI) showed
the manufacturing sector in the country, one of the world's
biggest resource consumers, unexpectedly picked up momentum this
    In Canada, retail sales fell 0.1 percent from June's record
level and after six months of gains, with strong auto sales
failing to offset weakness in areas such as clothing and
    "Commodity currencies were positive after the China data,
the PMI, and then everything reversed when North America came
in. Definitely after the Canadian retail sales number, which was
worse than expected," said David Bradley, director of foreign
exchange trading at Scotiabank.
    "There's a continued selloff, reversal of the overnight move
in Aussie and Kiwi as well, so that helps add pressure onto the
Canadian dollar also."
    At 9:22 a.m. (1322 GMT), the Canadian dollar was at
C$1.1019 to the greenback, or 90.75 U.S. cents, firmer than 
Monday's close at C$1.1031, or 90.65 U.S. cents, but well off
the C$1.0986, or 91.02 U.S. cents, touched earlier in the
    Except for its commodity counterparts and the U.S. dollar,
the Canadian dollar was weaker against other major currencies.
    "In general, the U.S. dollar wants to continue to
strengthen. That trend is firmly in place, but obviously when
data or events come in, it might cause a slight reversal. You're
going to see some profit-taking or some stop-losses go through,"
said Bradley. He added that geopolitical factors overnight also
affected the market, including the United States and its Arab
allies bombing Syria for the first time on Tuesday.
    Canadian government bond prices were higher across the
maturity curve, with the two-year up 4.7 Canadian
cents to yield 1.133 percent and the benchmark 10-year
 adding 19 Canadian cents to yield 2.205 percent.

 (Editing by Jeffrey Benkoe)