* C$ up at 93.48 U.S. cents
* Retail sales figures disappoint
* Bonds flat to lower
* Fed, G20 meetings in focus this week (Adds details, updates prices)
By Ka Yan Ng
TORONTO, Sept 22 (Reuters) - The Canadian dollar cut gains against the U.S. currency on Tuesday after domestic data showed retail sales unexpectedly fell in July, but the unit was still up on the day supported by rising global stocks and commodity prices.
Canadian retail sales fell in July from June after two months of robust gains, falling 0.6 percent in the month contrary to forecasts for a 0.6 percent gain. [ID:nN22339158]
While the retail sales figures were disappointing, other July indicators such as solid reports on wholesale trade and manufacturing will likely keep the month's gross domestic product in growth territory as the economy takes steps out of recession.
"The fact that the July GDP result is on track for a positive reading is a step in the right direction," said Charmaine Buskas, senior economics strategist, at TD Securities.
By 9:33 a.m. (1333 GMT), the Canadian dollar had recovered much of its post-data move, and was at C$1.0697 to the U.S. dollar, or 93.48 U.S. cents, up from Monday's close of C$1.0775 to the U.S. dollar, or 92.81 U.S. cents.
It had briefly cut gains to as low as C$1.0718, or 93.30 U.S. cents after the retail sales report.
The rise in the Canadian dollar follows a mood of caution that characterized Monday's trading ahead of the U.S. Federal Reserve policy meeting and this week's G20 summit.
Investors on Tuesday scooped up assets perceived to be riskier. World stocks .MIWD00000PUS rose and the greenback fell as the Fed's two-day policy meeting got underway. The Fed is likely to hold rates steady but markets are eager to know if the central bank will soon unwind some stimulus programs due to a pickup in economic data.
"There's a return of risk appetite and with that commodity prices back in favor," said Matthew Strauss, senior currency strategist at RBC Capital Markets.
"If we look across the board oil, gold, base metal prices are up. That is supporting the commodity-based currencies in general."
The price of oil CLc1, a key Canadian export, climbed above $71 a barrel, while gold and base metals prices pushed higher on a weaker U.S. dollar. [O/R] [GOL/] [MET/L]
BONDS FLAT TO LOWER
Most Canadian bond prices were flat to lower, looking for direction from their U.S. counterparts where prices were steady ahead of the Fed meeting and the start of a heavy week of U.S. issuance. [US/]
A near record $112 billion in shorter-dated U.S. Treasury issues are due this week.
The two-year bond CA2YT=RR was up 1 Canadian cent at C$99.47 to yield 1.281 percent. The 10-year bond CA10YT=RR eased 11 Canadian cents to C$102.60 to yield 3.431 percent. The 30-year bond CA30YT=RR dropped 20 Canadian cents to C$117.65 to yield 3.946 percent.
The top issue later in the week will be a meeting of leaders from the Group of 20 nations in Pittsburgh. Among major issues expected to be discussed will be bankers' pay and the need to examine strategies for withdrawing state stimulus. [ID:nLH78576] (With additional reporting by Jennifer Kwan; Editing by Jeffrey Hodgson)