* C$ at C$1.0351 vs US$, or 96.61 U.S. cents * Fall in domestic jobs data weakens currency By Alastair Sharp TORONTO, Aug 9 (Reuters) - The Canadian dollar slipped half a cent against the U.S. dollar on Friday after an unexpected fall in domestic employment data for July. Record public sector job losses and scarce employment opportunities for youth pushed the economy to shed a net 39,400 jobs during the month, compared to the 10,000 gain expected in a Reuters poll. The Canadian dollar weakened swiftly on the news, pushing to a session low of C$1.0352, although it was still well clear of the C$1.04 range it was trading in earlier in the week. "With this print, on the back of nothing else on the data calendar, the weakness in the Canadian dollar makes sense and we may stick fairly close to the top of the range for the rest of the day," said David Tulk, chief Canada macro strategist at TD Securities. At 9:21 a.m. (1321 GMT) the Canadian dollar was trading at C$1.0351 to the greenback, or 96.61 U.S. cents, compared with C$1.0324, or 96.86 U.S. cents, at Thursday's North American close. The currency has in recent weeks moved most forcefully on external developments, and the typically volatile employment data may yet be subsumed by global markets and monetary policy. "There's so many other big things that are happening with respect to the Canadian dollar, whether it is the trajectory of commodity currencies generally ... or the questions surrounding Fed policy, which we think are ultimately likely to be a bigger factor than these fundamentals," said Dov Zigler, financial markets economist at Scotiabank. Prices for Canadian government debt were mostly higher, though prices slipped at the long end of the curve. The two-year bond gained 2.5 Canadian cents to yield 1.129 percent, and the benchmark 10-year bond rose 7 Canadian cents to yield 2.490 percent.