* C$ at C$1.0804, or 92.56 U.S. cents
* U.S. consumer confidence rises in August
* Bond prices flat across the curve (Recasts, updated throughout)
By Frank Pingue
TORONTO, Aug 25 (Reuters) - Canada's dollar unraveled its early gains and turned lower on Tuesday morning as data from the United States came in better than expected and offered a bid to the greenback.
The turnaround in the Canadian dollar came after data showed U.S. consumer confidence rose more than expected in August on an improved outlook for the job market and the overall economy. [ID:nN25200381]
That data followed an earlier report that showed prices of U.S. single-family homes rose for the second consecutive month in June, adding to evidence that the three-year housing slump is easing. [ID:nNYS005335]
The upbeat data lent an immediate boost to the greenback, a departure from earlier in the summer when positive news would boost the Canadian dollar by convincing investors to do away with the safe-haven appeal of the U.S. currency.
"Whereas the safe-haven trade was the dominant theme for many months, it seems as though economic health is actually a positive for the U.S. dollar," said Eric Lascelles, chief economics and rates strategist at TD Securities.
"So the fact that we have seen some very nice home price and confidence data in the U.S. seems to be a rather positive improvement for the U.S., and it's something that is holding back the Canadian dollar.
At 10:55 a.m. (1455 GMT), the Canadian unit was at C$1.0804 to the U.S. dollar, or 92.56 U.S. cents, down from C$1.0770 to the U.S. dollar, or 92.85 U.S. cents, at Monday's close.
Earlier, the Canadian dollar rallied to C$1.0718 to the U.S. dollar, or 93.30 U.S. cents, its highest level since Aug. 6, as North American equities were poised for a higher open.
No Canadian data is due on Tuesday, but traders may keep an eye on a speech by Timothy Lane, a deputy governor of the Bank of Canada. He will be speaking on "The Canadian Economy Beyond the Recession" in Kingston, Ontario, at 1 p.m. (1700 GMT).
BOND PRICES FLAT
Canadian bond prices were mostly unchanged across the curve as the latest data from the United States left little interest in more secure assets like government debt.
The two-year Canadian bond CA2YT=RR was down 1 Canadian cent at C$99.37 to yield 1.318 percent, while the 10-year bond CA10YT=RR rose 10 Canadian cents to C$102.70 to yield 3.421 percent.
The 30-year bond CA30YT=RR was up 15 Canadian cents at C$118.45 to yield 3.905 percent. (Editing by Rob Wilson)