CANADA FX DEBT-C$ weakens ahead of business outlook survey

    * Canadian dollar at C$1.3372, or 74.78 U.S. cents
    * Loonie touches its weakest since March 29 at C$1.3378
    * Bond prices mixed across the yield curve

    TORONTO, April 3 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Monday, surrendering most of
last week's gains ahead of the release of a business outlook
survey by the country's central bank.
    At 9:24 a.m. EDT (1324 GMT), the Canadian dollar          
traded at C$1.3372 to the greenback, or 74.78 U.S. cents, weaker
than Friday's close of C$1.3299, or 75.19 U.S. cents.
    The currency's strongest level of the session was C$1.3295,
while it touched its weakest since March 29 at C$1.3378.
    The loonie rose 0.6 percent last week as data showing robust
domestic growth in January raised prospects of an
earlier-than-expected Bank of Canada interest rate hike. The
currency finished the first quarter with a 1 percent gain after
rising more than 3 percent in 2016.
    Still, Bank of Canada Governor Stephen Poloz reiterated the
bank's dovish take on Canada's fourth-quarter economic growth in
an interview published on Friday.             
    At 10:30 EDT (1430 GMT), the central bank will release its
business outlook report, which surveys about 100 companies for
their expectations on sales, hiring and other factors
influencing business decisions.
    The Bank of Canada's next interest rate decision and
Monetary Policy Report are due on April 12.
    The U.S. dollar        gained 0.2 percent against a basket
of major currencies as markets eyed the U.S. nonfarm payrolls
report due on Friday for clues on the likely pace of interest
rate rises from the U.S. Federal Reserve.             
    U.S. crude        prices dipped 0.1 percent to $50.55 a
barrel as upbeat economic data from Asia pointed to strong
energy demand from the region, offsetting a rebound in Libyan
oil production.             
    Oil is one of Canada's major exports. 
    Canadian government bond prices were mixed across the yield
curve, with the two-year            flat to yield 0.749 percent
and the 10-year             rising 10 Canadian cents to yield
1.612 percent.
    Canada's trade report for February is due on Tuesday, while
the country's employment report for March is due on Friday.

 (Reporting by Fergal Smith; Editing by Jeffrey Benkoe)