CANADA FX DEBT-C$ weakens after China data, domestic retail sales

* Canadian dollar at C$1.1047 or 90.52 U.S. cents
    * Bond prices higher across the maturity curve

    By Leah Schnurr
    TORONTO, April 23 (Reuters) - The Canadian dollar weakened
modestly against the greenback on Wednesday as more signs of
slower economic growth in China and downward revisions to
domestic retail sales left the currency churning in its recent
    Data showed Chinese factory activity shrank for the fourth
month in a row in April, though the pace of contraction eased
slightly compared to the month before. 
    The loonie is often sensitive to developments in China,
which is the world's second-largest economy and a major consumer
of natural resources. 
    "The Chinese data overnight continues to signal that there's
going to be issues with China hitting their growth targets if
the government doesn't look to maybe step in to do some more to
support the recovery," said Scott Smith, senior market analyst
at Cambridge Mercantile Group in Calgary.
    Economic data at home was not able to provide support for
the loonie as Canadian retail sales grew more than expected in
February but January's figures were revised lower.
    Recent stronger Canadian economic data had helped the
Canadian dollar bounce back from a 4-1/2-year low hit in March,
but the loonie has lost traction in the last couple weeks as
analysts weigh the modest economic improvement against a central
bank that is still neutral in its monetary policy.
    "We're seeing a little bit of drifting, there is still in
the market a Canadian dollar bearish sentiment on an overall
basis," said Smith.
    "To some extent, we're around this pivot right now at the
C$1.10 figure (and) we're waiting for the next move on where it
will go."
    The Canadian dollar was at C$1.1047 to the
greenback, or 90.52 U.S. cents, weaker than Tuesday's close of
C$1.1028, or 90.68 U.S. cents.
    For the session, the loonie is likely to find support around
  C$1.1060 to C$1.1070 area, while C$1.10 will likely cap any
strength, said Smith.
    Canadian government bond prices were higher across the
maturity curve, with the two-year up 1 Canadian cent
to yield 1.061 percent and the benchmark 10-year up
11 Canadian cents to yield 2.429 percent.

 (Editing by Meredith Mazzilli)