CANADA FX DEBT-C$ softens to 2-week low as recent weak data weighs

* C$ at C$1.0069 vs US$, or 99.31 U.S cents
    * C$ seen trading between C$1.0040 and C$1.0090
    * Bond prices mixed

    By Solarina Ho
    TORONTO, Feb 11 (Reuters) - Canada's dollar touched its
weakest level in two weeks, extending Friday's declines
following Canadian data that showed unexpected job losses in
January and lower-than-expected housing starts.
    At 9:12 a.m. (1412 GMT), the currency was trading
at C$1.0069 against the U.S. dollar, or 99.31 U.S. cents, weaker
than the previous session's North American close at C$1.0027, or
99.73 U.S. cents.
    "We really failed to make any real headway on Friday ...
seeing USD/CAD this morning trading up here in the 1.0070s, I'm
not surprised after the jobs report that we finally got the
follow-through that we probably should've got Friday," said
Steve Butler, managing director of foreign exchange trading at
    He added that it may be a good time for longer-term
investors to buy the Canadian dollar as it weakened toward
    Friday's data showed that the economy shed 21,900 jobs last
month, a sharp pullback from several months of oversized gains.
Separate data showed the country posted a record trade deficit
last year and housing starts hit their lowest since mid-2009.
    Butler expected the currency to trade between around
C$1.0040 and C$1.0090 on Monday.
    "All things considered these days, 50 points is a big move
and we've almost had 60 now from the low to the high. I'm not
sure we're going to see a whole lot more on the top side," said
Butler. "It's probably as weak as we'll see Canada get unless we
see risk really deteriorate today."
    The Canadian dollar was weaker than most other major
currencies, except for the Japanese yen and the
    Looking ahead, key drivers for market sentiment will include
U.S. retail sales data on Wednesday and a Bank of Japan meeting
later in the week.
    Canadian government bond prices were mixed, with the price
of a two-year bond down half a Canadian cent to yield
1.108 percent and the benchmark 10-year bond up 1
Canadian cent, yielding 1.956 percent.