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CANADA FX DEBT-C$ weakens as investors weigh rising U.S.-China tensions

    * Canadian dollar falls 0.2% against the greenback
    * Price of U.S. oil declines 1.6%
    * Loonie trades in a range of 1.3360 to 1.3420
    * Canadian bond yields trade mixed across a flatter curve

    TORONTO, Aug 4 (Reuters) - The commodity-linked Canadian
dollar weakened against its U.S. counterpart on Tuesday as
investors weighed rising coronavirus cases and increased
tensions between the United States and China.
    U.S. stock index futures fell after U.S. President Donald
Trump's moves to force China-owned TikTok into a sale of its
U.S. operations drew a sharp rebuke from Beijing.             
    Canada runs a current account deficit and is a major
producer of commodities, including oil, so the loonie tends to
be sensitive to the global flow of trade and capital.
    U.S. crude        prices were down 1.6% at $40.35 a barrel
amid concerns that a fresh wave of COVID-19 infections will see
a global demand recovery stalling due to tighter lockdowns, just
as major producers ramp up output.                 
    The Canadian dollar        was trading 0.2% lower at 1.3418
to the greenback, or 74.53 U.S. cents. The currency traded in a
range of 1.3360 to 1.3420.
    In July, the loonie strengthened for the fourth straight
month as the U.S. dollar broadly declined and as evidence
emerged of global and domestic economic recovery from the
coronavirus crisis. Canada's jobs report for July is due on
Friday.
    Speculators have cut bearish bets on the loonie to the
lowest since mid-March, data from the U.S. Commodity Futures
Trading Commission showed on Friday.   
    Canadian government bond yields were mixed across a flatter
curve, with the 10-year             down 2.9 basis points at
0.439%. On Friday, it touched its lowest intraday level since
March 9 at 0.412%.

 (Reporting by Fergal Smith
Editing by Nick Zieminski)
  
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