* Canadian dollar at C$1.1035 or 90.62 U.S. cents
* Bond prices lower across the maturity curve
By Leah Schnurr
TORONTO, April 2 The Canadian dollar was little
changed against the greenback on Wednesday as the currency
consolidated after recent gains, while investors looked ahead to
some key domestic economic reports later in the week.
Since dropping to a 4-1/2 year low nearly two weeks ago, the
Canadian dollar has managed to recover some losses and traders
expect the currency could move sideways as it absorbs those
gains. Better than expected Canadian producer prices data gave
the loonie a lift on Tuesday, and the market was turning its
focus to trade balance and labor market reports due on Thursday
and Friday, respectively.
"Right now we're seeing a market for U.S. dollar-Canadian
dollar that's very range-bound, traders not wanting to take a
large position either way until we see some more concrete
domestic data later in the week," said Scott Smith, senior
market analyst at Cambridge Mercantile Group in Calgary.
The Canadian dollar was at C$1.1035 to the
greenback, or 90.62 U.S. cents, slightly weaker than Tuesday's
close of C$1.1032, or 90.65 U.S. cents.
The currency earlier firmed to C$1.1003 before giving up
those gains. Analysts expect the C$1.10 level will represent
significant support for the U.S. dollar-Canadian dollar pairing
that could prevent the loonie from pushing higher in the short
On the topside, the pair should see resistance around the
C$1.1050 to C$1.1060 area, Smith said.
Smith said the loonie could break from that range if there
is a surprise in Thursday's trade balance numbers or if
something unexpected comes out of the European Central Bank's
policy meeting, which is also on Thursday.
Canadian government bond prices were lower across the
maturity curve, with the two-year off 3 Canadian
cents to yield 1.092 percent and the benchmark 10-year
down 38 Canadian cents to yield 2.539 percent.
(Editing by Peter Galloway)