CANADA FX DEBT-C$ flat as China data, domestic retail sales weigh

* Canadian dollar at C$1.1032 or 90.65 U.S. cents
    * Bond prices higher across the maturity curve

 (Adds quote and details, updates prices)
    By Leah Schnurr
    TORONTO, April 23 (Reuters) - The Canadian dollar was little
changed 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 ended the North American
session at C$1.1032 to the greenback, or 90.65 U.S. cents,
slightly weaker than Tuesday's close of C$1.1028, or 90.68 U.S.
    While the next major move for the Canadian dollar is still
likely to be lower, that will ultimately have to come on the
back of strength in the U.S. dollar as the Federal Reserve
continues to wind down its accommodative monetary policy, said
David Tulk, chief Canada macro strategist at TD Securities in
    "If you look at the Canadian-specific reasons or factors why
we could see a weaker Canadian dollar, it seems a lot of those
have been already well established in terms of the market," said
    "They understand the fact that the Bank of Canada is
sounding cautious, they understand that economic growth will
more or less underperform the U.S., so our big view point is
that it has to come through U.S. dollar strength."
    Canadian government bond prices were higher across the
maturity curve, with the two-year up half a Canadian
cent to yield 1.064 percent and the benchmark 10-year
 up 15 Canadian cents to yield 2.425 percent.

 (Editing by Chris Reese)