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CANADA FX DEBT-C$ turns positive, erasing fall to parity

* C$ turns positive, erasing earlier fall past parity

* Stock market rally helps sentiment

* C$ at C$0.9897 to the U.S. dollar, or $1.0104

TORONTO, Aug 9 (Reuters) - Canada’s dollar turned positive, strengthening against the U.S. currency in midday trade on Tuesday after sinking past parity early in the session, as a rally in North American stock markets buoyed sentiment.

At 11:44 a.m. (1544 GMT), the Canadian dollar CAD=D4 eased to C$0.9897 to the U.S. dollar, or $1.0104, after touching a session high of C$0.9894, or $1.0107. That was above Monday's North American session close at C$0.9909 to the U.S. dollar, or $1.0092. (Reporting by Andrea Hopkins; Editing by Jeffrey Hodgson)

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