CANADA FX DEBT-C$ surrenders gains after posting new 1-week high

    * Canadian dollar at C$1.3332, or 75.01 U.S. cents
    * Bond prices higher across a flatter yield curve

    TORONTO, April 11 (Reuters) - The Canadian dollar
surrendered its gains on Tuesday against its U.S. counterpart
after posting a fresh one-week high, with trading confined to a
narrow range ahead of Wednesday's interest rate decision by the
Bank of Canada.
    Cautious trading for the loonie came as nervous investors
sought shelter in gold, Treasuries and the yen, while growing
tensions over Syria put the U.S. administration and Russia on a
collision course.             
    The Bank of Canada is widely expected to hold rates at 0.50
percent and may stick to its cautious tone given the number of
uncertainties facing the Canadian economy, particularly U.S.
trade policy.
    Still, the strength of recent domestic data has pointed to a
pickup in Canada's economy and economists expect the central
bank could raise its first-quarter growth forecast.
    At 9:31 a.m. ET (1331 GMT), the Canadian dollar          was
trading at C$1.3332 to the greenback, or 75.01 U.S. cents,
unchanged from Monday's close.
    The currency's weakest level of the session was C$1.3335,
while it touched its strongest since April 3 at C$1.3311.
    Prices of oil, one of Canada's major exports, edged back
from a five-week high as rising U.S. shale oil production
weighed against support from tensions in the Middle East and
production cuts in Organization of the Petroleum Exporting
Countries and other states.             
    U.S. crude        prices were down 0.02 percent to $53.07 a
    Canadian government bond prices were higher across a flatter
yield curve in sympathy with U.S. Treasuries. The two-year
           price rose 2.5 Canadian cents to yield 0.749 percent
and the 10-year             climbed 24 Canadian cents to yield
1.571 percent.
    Canada is one of four top-rated countries exposed to a
potential housing market correction, Moody's said.             

 (Reporting by Fergal Smith; Edititing by Frances Kerry)