* Canadian dollar at C$1.0895 or 91.79 U.S. cents
* Bond prices higher across the maturity curve
By Leah Schnurr
TORONTO, May 13 The Canadian dollar was little
changed against the greenback on Tuesday, held back by
disappointing Chinese data, as a lack of domestic economic news
left the currency searching for direction.
Data overseas showed China's economic activity was weak
across the board last month, with figures from output to
investment and consumption missing market expectations.
The Canadian dollar is often sensitive to data out of China,
the world's second-largest economy and a major consumer of
"That again signals that growth is slowing in the region,"
said Scott Smith, senior market analyst at Cambridge Mercantile
Group in Calgary.
"What policymakers have said is essentially coming true,
where growth is transitioning to more of a sustainable
trajectory and we're not going to see that credit-fueled
reflation in the economy."
At home, the economic calendar is light this week, with no
major reports expected until March manufacturing sales on
The Canadian dollar was at C$1.0895 to the
greenback, or 91.79 U.S. cents, a tad stronger than Monday's
close of C$1.0897, or 91.77 U.S. cents.
The euro was lower against the Canadian dollar after sources
said the German central bank is ready to support European
Central Bank policy action if it is needed.
Earlier, The Wall Street Journal, citing a person familiar
with the matter, reported the Bundesbank was willing to back an
array of stimulus measures from the ECB next month. The euro was
The report gave strength to the U.S. dollar, which also kept
pressure on the Canadian dollar against the greenback.
After whip-saw trading sent the loonie through some key
technical barriers last week, Smith sees the C$1.09 level acting
as a pivot for the currency.
For the session, the Canadian dollar is likely to trade in a
tight range between C$1.0940 and C$1.0860, he said.
Canadian government bond prices were higher across the
maturity curve, with the two-year up 1-1/2 Canadian
cents to yield 1.065 percent and the benchmark 10-year
up 30 Canadian cents to yield 2.371 percent.
(Editing by Nick Zieminski)