CANADA FX DEBT-C$ weaker after four-day gain; focus turns to Fed
* C$ at C$1.0325 vs US$, or 96.85 U.S. cents * Chance of less stimulus at Fed meeting causes CAD caution * C$ gains against Aussie after weak Australian jobs data By Alastair Sharp TORONTO, Sept 12 (Reuters) - The Canadian dollar ended slightly weaker on Thursday after a four-session advance against the U.S. dollar, with investors turning their attention to a Federal Reserve meeting next week that could hurt the loonie's prospects. The Canadian currency broke through its 100-day moving average late on Wednesday, but its recent gains against the greenback were beginning to falter. "If the Fed doesn't taper next week, they will next month," said John Curran, senior vice president at CanadianForex. A reduction in the size of the Fed's monthly bond-buying would likely lead to an appreciation in the greenback, which would mean a weaker Canadian dollar versus the U.S. dollar. Ahead of the Fed, the pair will likely trade in a narrow C$1.03-C$1.3050 range, TD Securities macro strategist Mazen Issa said. "Until we get some clarity from the Fed next week, I think we're bound to see little price action in the dollar/Canadian," he said. The Canadian dollar ended the day at C$1.0325 to the greenback, or 96.85 U.S. cents, compared with C$1.0315, or 96.95 U.S. cents, at Wednesday's North American close. The Canadian currency made strong gains against its commodity-linked cousin the Australian dollar after a weak jobs report in that country suggested its central bank might not be done cutting rates. "Today, the Canadian dollar is not the story, when people turn their attention to it they will see that it is mispriced right now and start selling it," Curran said, adding the currency would likely trade as weak as C$1.0450 by some time next week. Prices for Canadian government bonds were mixed, with the two-year bond up 2 Canadian cents to yield 1.283 percent and the benchmark 10-year bond flat to yield 2.785 percent.
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