CANADA FX DEBT-C$ supported by upbeat China data

* C$ ticks higher at 99.30 U.S. cents

* Canadian bond prices flat to lower

By Jennifer Kwan

TORONTO, Dec 13 (BestGrowthStock) – The Canadian dollar edged
higher against its U.S. counterpart on Monday morning, lifted
by a slightly weaker greenback and firm commodity prices on
strong Chinese economic data.

Chinese industrial output in November beat expectations,
while inflation climbed to a 28-month high. The upbeat data
helped to send commodities higher. [ID:nBJL002113]
[ID:nL3E6ND0F6] [O/R] [GOL/]

“Stronger economic news out of China got the ball rolling,”
said Jack Spitz, managing director of foreign exchange at
National Bank Financial

“Where it’s a pro-risk environment equities are trading
stronger. The U.S. dollar itself is weaker along with the
Japanese yen. So the Canadian dollar along with other commodity
based currencies are all trading higher this morning.”

At 7:50 a.m. (1250 GMT), the Canadian dollar (CAD=D4: ) stood
at C$1.0070 to the U.S. dollar, or 99.30 U.S. cents, up
slightly from Friday’s finish at C$1.0094 to the U.S. dollar,
or 99.07 U.S. cents.

Spitz said markets will be focused on a speech by Bank of
Canada Governor Mark Carney later on Monday. The speech is
entitled “Reflections on the Economic Outlook” and is expected
to be followed by a press conference.

The central bank chief may offer hints on how deep into
2011 he will resume his stalled rate hike campaign given the
economy’s decelerating growth.

Canadian bond prices were largely flat to lower on Monday,
tracking U.S. Treasuries whose prices edged down as investors
sold the bonds in anticipation of higher growth and deeper
deficits in the United States. [US/]

The two-year bond (CA2YT=RR: ) ticked 5 Canadian cents lower
to yield 1.744 percent, while the 10-year bond (CA10YT=RR: ) was
down 15 Canadian cents to yield 3.326 percent.
(Reporting by Jennifer Kwan, Editing by Chizu Nomiyama)

CANADA FX DEBT-C$ supported by upbeat China data