* Canadian dollar trades in a range of 1.3240 to 1.3271 * Canada's annual inflation rate falls to 1.9% in August * Price of U.S. oil decreases 1.9% * Canada's 10-year yield touches a six-day low at 1.432% TORONTO, Sept 18 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Wednesday, as data showing a slight slowdown in domestic inflation failed to move the needle on Bank of Canada interest rate expectations. Canada's annual inflation rate dipped to 1.9% in August from 2.0% in July on lower gasoline prices, while the average of the Bank of Canada's three preferred measures of core inflation was little changed at 2.0%, data from Statistics Canada showed. Chances that the central bank would cut interest rates by the end of the year held steady at 30%, data from the overnight index swaps market showed. Meanwhile, investors expect the U.S. Federal Reserve to ease rates on Wednesday by a quarter of a percentage point, although some market participants were buying the U.S. dollar in case the Fed signals a more confident view. At 9:11 a.m. (1311 GMT), the Canadian dollar was trading nearly unchanged at 1.3248 to the greenback, or 75.48 U.S. cents. The currency, which hit on Tuesday a near two-week low at 1.3300, traded in a range of 1.3240 to 1.3271. The price of oil, one of Canada's major exports, extended the previous day's decline after Saudi Arabia said it would quickly restore full production following last weekend's attacks on its facilities. U.S. crude oil futures were down 1.9% at $58.23 a barrel, Canadian government bond prices edged higher across the yield curve in sympathy with U.S. Treasuries. The two-year rose 1 Canadian cent to yield 1.606% and the 10-year was up 2 Canadian cents to yield 1.447%. The 10-year yield touched its lowest intraday since Sept. 12 at 1.432%. (Reporting by Fergal Smith Editing by Nick Zieminski)
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