* C$ at C$1.0568 vs US$, or 94.63 U.S. cents * GDP 2.7 percent in 3rd quarter, vs forecast of 2.5 percent * Bond prices lower across the maturity curve By Leah Schnurr TORONTO, Nov 29 (Reuters) - The Canadian dollar strengthened to a session high against the greenback on Friday, backing further away from recent four-month lows after data showed the domestic economy had more strength than expected in the third quarter. The 2.7 percent annualized pace of growth - the fastest rate in two years - was driven mainly by consumer spending and business inventory accumulation, though there were also signs of a rebound in business investment. While the reading beat market forecasts, it also came on the heels of a disappointing second quarter. Averaging the second and third quarter gives a growth rate of a little over 2 percent, "a fair reflection of the underlying growth trend in the economy," said Doug Porter, chief economist at BMO Capital Markets in Toronto. "The 2.7 is a bit of an outlier and I suspect it will come down to earth somewhat in the fourth quarter," he said. The Canadian dollar was at C$1.0568 to the greenback, or 94.63 U.S. cents, stronger than Thursday's close of C$1.0587 or 94.46 U.S. cents. The Canadian currency has lost more than 2 percent since late October, hurt by a retreat in the Bank of Canada's hawkish tilt and expectations the U.S. Federal Reserve will soon move to withdraw some monetary stimulus. The loonie hit C$1.0603 on Wednesday, its lowest level since early July. The policy shift from the Bank of Canada has markets expecting interest rates will stay at 1 percent into 2015. Friday's GDP report puts a "slightly healthier glow" on the economy than the Bank of Canada suspected, making the central bank likely to stay neutral at their meeting next week, said Porter. "I don't think there's a compelling case for them to ratchet up the dovishness yet." The Bank of Canada will release its interest rate decision on Wednesday. The two-year bond dipped 2 Canadian cents to yield 1.100 percent, while the benchmark 10-year bond was off 15 Canadian cents to yield 2.556 percent.