CANADA FX DEBT-Strong data and commodities help C$ close higher

* C$ closes at C$1.0558 per U.S. dollar

* Currency snaps four-session skid

* Retail sales continue climb in September

* Bond prices little changed
(Recasts)

By Frank Pingue

TORONTO, Nov 23 (Reuters) - The Canadian dollar rose on
Monday, boosted by stronger equity and commodity prices,
including a record level for gold, with solid domestic retail
sales data also providing support.

The currency's rise was compounded by a drop in the
greenback, which fell against a slew of currencies as the view
that U.S. interest rates would stay low for a long time
prompted investors to diversify out of the dollar. [FRX/]

Data that showed Canadian retail sales increased twice as
much as expected in September also gave the domestic currency
some support before it slipped into a tight range for much of
the North American session. [ID:nN23252766]

"Most of the action was overnight and so it's a little bit
disappointing that we couldn't get any follow through," said
Steve Butler, director of foreign exchange trading at Scotia
Capital. "To me everything is pointing to a resumption in the
U.S. dollar downtrend, but I think the herd is waiting for the
next push through some levels to get us going again."

Before settling into its range the Canadian currency had
rallied as high as C$1.0540 to the U.S. dollar, or 94.88 U.S.
cents, following a string of four straight lower closes.

It backed off slightly and went on to close at C$1.0558 to
the U.S. dollar, or 94.71 U.S. cents, up from C$1.0699 to the
U.S. dollar, or 93.47 U.S. cents, at Friday's close.

Gold hit a record high above $1,170 an ounce and added to
momentum from earlier this month, while oil prices rose after
strong U.S. housing data boosted expectations that an economic
rebound will bolster fuel demand. [GOL/] [O/R].

North American equities also ended higher as upbeat data
from Canada and the United States coupled with firm commodity
prices to boost optimism about an economic recovery.

Oil and gold are key Canadian exports whose prices often
influence its currency and equity market.

Butler said liquidity in financial markets is expected to
dry up heading into the U.S. Thanksgiving holiday on Thursday.

BOND PRICES FLAT

Canadian bond prices ended little changed as the backdrop
of strong data crimped investor appetite for more secure assets
like government debt.

The two-year bond CA2YT=RR ended up 2 Canadian cents at
C$100.01 to yield 1.247 percent, while the 10-year bond
CA10YT=RR rose 16 Canadian cents to C$103.11 to yield 3.365
percent.

Canadian bonds outperformed their U.S. counterparts across
much of the curve. The Canadian 10-year bond was 1 basis point
above its U.S. counterpart, compared with 1.50 basis points on
Friday.
(Editing by Jeffrey Hodgson)
((frank.pingue@thomsonreuters.com ; +1 416 941-8094; Reuters
Messaging: frank.pingue.reuters.com@reuters.net))
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