* C$ steady around 80.70 U.S. cents
* Bank of Canada rate announcement in focus
* Bond prices follow U.S. Treasury market higher
By Frank Pingue
TORONTO, April 21 (Reuters) - The Canadian dollar was flat versus the U.S. dollar on Tuesday morning ahead of the Bank of Canada’s interest rate announcement and statement that could make mention of nonconventional policy.
The uncertainty surrounding the central bank’s upcoming rate announcement has left the Canadian currency lagging gains made in other commodity-based currencies overnight like the Australian and New Zealand dollars.
The bank is expected to leave its overnight rate steady at 0.50 percent when it releases its statement at 9:00 a.m. (1300 GMT), and traders will watch for any talk of quantitative or credit easing. [ID:nN16520541] and [ID:nTOR004441]
“In (the Canadian dollar) we haven’t had that bounce that some of the other riskier currencies had overnight,” said Adam Cole, currency strategist at RBC Capital Markets in London.
“I think that is probably the market setting itself up for some risk that the bank says at least something on Q/E today, though obviously we expect most of the details on Thursday.”
The Bank of Canada will lay out a framework for “credit and quantitative easing” when it releases is next Monetary Policy Report on Thursday.
At 7:35 a.m. the Canadian dollar was at C$1.2390 to the U.S. dollar, or 80.71 U.S. cents, off slightly from C$1.2385 to the U.S. dollar, or 80.74 U.S. cents, at Monday’s close.
Canadian bond prices, with no domestic data to influence a move, were flat to higher across the curve alongside the bigger U.S. Treasury market on U.S. bank sector concerns.
The move into more secure bonds extended gains from the previous session when Bank of America (BAC.N) reported a jump in non-performing assets, raising uncertainties about future writedowns at a time when investors are already worried about the results of the stress tests on the banking industry. (Editing by Theodore d’Afflisio)