* C$ up at 93.48 U.S. cents
* Retail sales figures disappoint
* Fed, G20 meetings in focus this week
(Adds details, updates prices)
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
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
"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
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
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
The price of oil
, 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]
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.
A near record $112 billion in shorter-dated U.S. Treasury
issues are due this week.
The two-year bond
was up 1 Canadian cent at
C$99.47 to yield 1.281 percent. The 10-year bond
eased 11 Canadian cents to C$102.60 to yield 3.431 percent. The
30-year bond 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.
(With additional reporting by Jennifer Kwan; Editing by