* C$ slips as low as C$1.1103 to the U.S. dollar
* Traders await Friday's key jobs data
* Bonds flat ahead of Fed meeting minutes
By Frank Pingue
TORONTO, Sept 2 (Reuters) - Canada's currency hit a two-week low versus the U.S. dollar on Wednesday, extending the previous session's sharp skid, as weaker equities weighed on sentiment heading into Friday's key jobs data.
The currency is coming off a slide of nearly 1 U.S. cent in the previous session when economic concerns sent investors into safe havens like the U.S. greenback while threat of a federal election also dealt the currency a blow.
"Obviously we had a monster move yesterday and so I think the market's probably just trying to feel things out ... but I do feel like the market would rather be buying U.S. dollars on dips," said Steve Butler, director of foreign exchange trading at Scotia Capital.
"Plus we've still got some reasonable event risks for the rest of the week, especially Friday's jobs numbers."
At 9:20 a.m. (1320 GMT), the Canadian unit was at C$1.1102 to the U.S. dollar, or 90.07 U.S. cents, down from C$1.1041 to the U.S. dollar, or 90.57 U.S. cents, at Tuesday's close.
The currency weakened as far as C$1.1103, or 90.07, its lowest level since Aug 19.
Analysts said the currency may stick in a tight range until after Friday's key jobs report, which is expected to show Canada shed 10,000 jobs in August, while the unemployment rate is pegged to rise to 8.7 percent. U.S. jobs data is also due on Friday.
Butler said the commodity backdrop, often a key influence on the domestic currency given the nature of Canada's exports, was not playing as large a role of late as investors were focused more on moves in equity markets.
"That's taking a little bit of a back seat to the equities," said Butler. "Everybody has got this 'oh it's September and equities are going to collapse' mentality right now so people are really going to be watching stocks first and foremost for a little bit of short term direction."
This week investors have started to question the validity of an equity rally that has put Toronto stocks about 43 percent above the five-year low hit in March.
Canadian bond prices, with no domestic data to influence a move, were little changed across the curve.
Bond prices could remain stuck in a tight range until later in the session when the Federal Open Market Committee meeting minutes are released at 2:00 p.m. The minutes are watched closely for a glimpse into the Federal Reserve's thinking on the economy.
The two-year bond CA2YT=RR was down 2 Canadian cents at C$99.50 to yield 1.255 percent, while the 10-year bond CA10YT=RR was up 5 Canadian cents at C$103.35 to yield 3.343 percent.
The 30-year bond CA30YT=RR rose 10 Canadian cents to C$119.05 to yield 3.873 percent.
Canadian bonds were underperforming their U.S. counterparts across much of the curve. The Canadian 30-year bond yield was about 29.6 basis points below its U.S. counterpart, compared with 31.8 basis points on Tuesday. (Editing by Jeffrey Hodgson)