* C$ softer at C$0.9969
* Bonds firmer across curve
TORONTO, Jan 10 (Reuters) - The Canadian dollar held above parity against the greenback on Monday morning but returned some of last week's gains as risk appetite suffered on the back of weaker Chinese data and softer commodity prices.
China's trade surplus fell 6 percent to $183 billion last year, the latest evidence it is making progress in rebalancing its economy toward domestic consumption and cutting reliance on exports, such as Canada's, with demand for base metals falling. [ID:nTOE709033]
"It's generally commodity FX weakness," said Elsa Lignos, G10 currency strategist at RBC Capital Markets in London.
"On the day it's underperforming alongside the commodity currencies, but the moves aren't huge."
Copper in particular slid 1 percent as investors worried about debt problems in Europe and a rising U.S. dollar made metals more expensive for non-U.S. investors. [MET/L]
At 8:02 a.m. (1302 GMT), the currencystood at C$0.9969 to the U.S. dollar, or $1.0031, down from Friday's North American finish at C$0.9918 to the U.S. dollar, or $1.0083.
Lignos pointed to short-term support for the U.S. dollar still at last week's low of C$0.9889, with resistance at C$1.0020.
Later in the day, the Bank of Canada's business outlook and loan officer surveys and a speech from Deputy Governor Agathe Cote could provide further direction, but Lignos said broader global risk appetite will provide most of the impetus for the currency.
"More likely we're going to be stuck around these levels, trading around parity," she said.
Canadian bond prices were slightly stronger across the curve as North American equities pointed down. [US/]
The two-year bondwas up half a Canadian cent to yield 1.708 percent, while the 10-year bond added 10 Canadian cents to yield 3.171 percent.
(Reporting by Claire Sibonney, Editing by Chizu Nomiyama)
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