* Canadian dollar trades in a range of 1.3225 to 1.3260 * Loonie is on track to rise 0.4% in September * Price of U.S. oil decreases 1.5% * Canadian bond prices fall across a steeper yield curve TORONTO, Sept 30 (Reuters) - The Canadian dollar kept pace with its broadly stronger U.S. counterpart on Monday as the party of Canadian Prime Minister Justin Trudeau promised billions of dollars of new spending in a campaign platform ahead of next month's federal vote. At 9:31 a.m. (1331 GMT), the Canadian dollar was trading nearly unchanged at 1.3252 to the greenback, or 75.46 U.S. cents. The currency, which was on track to rise 0.4% for the month, traded in a range of 1.3225 to 1.3260. Trudeau's Liberal Party, which is in a tough battle for re-election, said on Sunday that new spending commitments would require annual deficits of more than C$20 billion over the next four years. Deficits add to a country's debt load but could also boost economic growth. The U.S. dollar climbed against a basket of major currencies after a report by Reuters that Germany's leading economic institutes had revised down their growth forecast for Europe's biggest economy for this year, weighed on the euro . The price of oil, one of Canada's biggest exports, slipped as China's economic outlook remained weak even as manufacturing data improved, with the continuing trade war with the United States weighing on demand growth for the world's largest crude importer. U.S. crude oil futures were down 1.5% at $55.10 a barrel. Speculators have slashed their bullish bets on the Canadian dollar to the lowest since June, data from the U.S. Commodity Futures Trading Commission and Reuters calculations showed on Friday. As of Sept. 24, net long positions had fallen to 4,592 contracts from 19,823 in the prior week. Canadian government bond prices were lower across a steeper yield curve in sympathy with U.S. Treasuries. The two-year fell 1.5 Canadian cents to yield 1.583% and the 10-year declined 28 Canadian cents to yield 1.388%. The gap between Canada's 10-year yield and its U.S. equivalent was unchanged at a spread of 31.5 basis points in favor of the U.S. bond. Producer prices in Canada rose by 0.2% in August from July on higher prices for pork products, as well as precious metals, Statistics Canada said. Canada's gross domestic product data for July is due on Tuesday, which could help guide expectations for the Bank of Canada policy outlook. (Reporting by Fergal Smith Editing by Alistair Bell)
Our Standards: The Thomson Reuters Trust Principles.