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C$ steadies near five-week high as risk appetite ebbs on vaccine worries

FILE PHOTO: A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto January 23, 2015. REUTERS/Mark Blinch/File Photo

TORONTO (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Tuesday after the pause of a high profile COVID-19 vaccine trial offset robust Chinese trade data, with the currency holding near an earlier five-week high.

Data showing that Chinese exports and imports climbed in September boosted the price of oil, one of Canada’s major exports.

U.S. crude oil futures CLc1 rose 1.9% to $40.17 a barrel but global equity markets .WORLD were pressured by news that Johnson & Johnson JNJ.N has paused its COVID-19 vaccine candidate clinical trials because of an unexplained illness in a study participant.

The Canadian dollar CAD= was trading nearly unchanged at 1.3105 to the greenback, or 76.31 U.S. cents. The currency touched its strongest intraday level since Sept. 8 at 1.3095.

Last week, the Canadian dollar notched its largest gain since early June, helped by a rebound in oil prices and hopes for U.S. stimulus, as well as strong domestic jobs data.

Canadian government bond yields were lower across a flatter curve in sympathy with U.S. Treasuries on Tuesday as Canada’s market reopened following the Thanksgiving Day holiday.

The 10-year CA10YT=RR fell 3.6 basis points to 0.593%, pulling back from its highest since Sept. 1 at 0.646% earlier in the session.

Reporting by Fergal Smith; Editing by Nick Zieminski

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