* Canadian dollar falls to 92.19 U.S. cents, a 1-week low
* Bonds edge higher
* Canada sheds 44,500 jobs, unemployment rate steady
* U.S. employment data is next key test
By Ka Yan Ng
TORONTO, Aug 7 (Reuters) - The Canadian dollar dropped to a one-week low versus the U.S. currency on Friday, while bond prices rose, after domestic jobs figures came in nearly three-times worse than expected and suggested the recovery was tepid.
Canadian employers eliminated 44,500 net jobs in July, many more cuts than the 17,500 median loss forecast by economists. But the unemployment rate remained unchanged from June at an 11-year high of 8.6 percent. [ID:nN07253705]
The Canadian dollar fell as low as C$1.0851 to the U.S. dollar, or 92.16 U.S. cents, immediately after the data, down from C$1.0785 to the U.S. dollar, or 92.72 U.S. cents, shortly before the numbers were published.
"It's taken a good-sized hit. The Canadian dollar has generally been supported by the good economic numbers relative to other countries, so this report will take a little shine off that story," said Sal Guatieri, senior economist at BMO Capital Markets in Toronto.
Some Canadian data, such as retail and home sales, have shown the Canadian economy is healing, and the Bank of Canada and most private-sector economists say the economy will start to grow in the third quarter. The central bank projects 1.3 percent growth in the July-September period after three quarters of contraction.
While the Canadian dollar tumbled after the domestic jobs report, the next test will be the important U.S. non-farm payrolls report, to be released at 8:30 a.m. (1230 GMT).
Economists surveyed by Reuters forecast the U.S. Labor Department report will show 320,000 workers lost their jobs in July, the least for any month since September.
At 7:50 a.m. (1150 GMT), the Canadian dollar was at C$1.0847 to the U.S. dollar, or 92.19 U.S. cents, down from Thursday's close at C$1.0767 to the U.S. dollar, or 92.88 U.S. cents.
Canadian bonds moved cautiously higher, with the two-year Canadian bond edging up 5 Canadian cents to C$99.13 to yield 1.433 percent, while the 10-year bond gained 15 Canadian cents to C$101.80 to yield 3.53 percent.
The 30-year bond rose 25 Canadian cents to C$116.50 to yield 3.536 percent. In the United States, the 30-year Treasury yielded 4.54 percent. (Additional reporting by Andrea Hopkins; Editing by Padraic Cassidy)