CANADA FX DEBT-C$ gets lift from oil, North American data

* Canadian dollar at C$1.3211 or 75.69 U.S. cents
    * Bond prices mostly lower across the maturity curve

    TORONTO, Sept 16 (Reuters) - The Canadian dollar advanced
against its U.S. counterpart on Wednesday, bolstered by further
gains in crude prices, stronger Canadian manufacturing data and
an unexpected fall in U.S. inflation.
    The currency continued to trade within a narrow range,
however, ahead of Thursday's interest rate decision by the
Federal Reserve.
    U.S. crude futures rose following an unexpected decline in
U.S. stockpiles and higher gasoline prices, though worries
remained about the broader global picture as well as the
potential impact of a rate hike on Thursday. The loonie is
typically sensitive to price moves in oil, due to Canada's
position as a major exporter of the commodity. 
    Domestically, factory sales rose for the third straight
month in July, up 1.7 percent, as sales rose in the motor
vehicle parts and assembly industries. This was stronger than
the 1 percent increase economists had been forecasting. May and
June sales data were also revised higher. 
    Also helping the currency was a pullback by the U.S. dollar,
which eased on U.S. inflation data that showed consumer prices
fell in August, the first decline in seven months.
    * At 9:22 a.m. ET (1322 GMT), the Canadian dollar 
was trading at C$1.3211 to the greenback, or 75.69 U.S. cents,
firmer than the Bank of Canada's official close of C$1.3247, or
75.49 U.S. cents on Tuesday.
    * The currency's strongest level of the session was
C$1.3203, while its weakest level was C$1.3253.
    * Markets are also awaiting the Fed's latest rate decision,
due at 2 p.m. EDT on Thursday.
    * U.S. crude prices were up 2.56 percent to $45.73,
while Brent crude added 2.51 percent to $48.95. 
    * The Canadian dollar is expected to trade between C$1.3200
and C$1.3280 against the U.S. dollar during Wednesday's North
American session, according to RBC Capital Markets.
    * Canadian government bond prices were mostly lower across
the maturity curve, with the two-year price down 2
Canadian cents to yield 0.51 percent and the benchmark 10-year
 falling 1 Canadian cent to yield 1.572 percent.
    * The Canada-U.S. two-year bond spread narrowed to -27.7
basis points, while the 10-year spread narrowed to -70.6 basis

 (Reporting by Solarina Ho; Editing by Meredith Mazzilli)