CANADA FX DEBT-Canadian dollar steadies as oil prices, wholesale trade fall

    * Canadian dollar trades near flat against the greenback
    * Canadian wholesale trade declines 1.2% in August
    * Price of U.S. oil decreases 1.3%
    * Canadian bond prices rise across the yield curve

    TORONTO, Oct 23 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Wednesday, with the
currency losing some of its recent positive momentum as oil
prices fell and domestic data showed a surprise drop in August
wholesale trade.
    Canadian wholesale trade decreased by 1.2% in August from
July on weaker sales in the machinery, equipment and supplies
subsector, as well as personal and household goods, Statistics
Canada said. Analysts had forecast a 0.3% increase.             
    The price of oil, one of Canada's major exports, slipped on
data showing a bigger-than-expected rise in U.S. crude stocks.
U.S. crude oil futures        were down 1.3% at $53.75 a barrel.
    At 9:23 a.m. (1323 GMT), the Canadian dollar          was
trading nearly unchanged at 1.3095 to the greenback, or 76.37
U.S. cents. The currency, which notched a three-month high on
Tuesday at 1.3071, traded in a narrow range of 1.3088 to 1.3109.
    The steady profile for the loonie came after Prime Minister
Justin Trudeau's Liberal party won Monday's federal election but
fell short of a majority government.                
    Investors are ditching bets that the Bank of Canada will cut
interest rates over the coming months as the domestic economy
shows resilience and the federal election result adds to
prospects of growth-boosting fiscal spending next year.
    The central bank's next interest rate decision is due on
Oct. 30, the same day that markets expect the Federal Reserve to
cut U.S. rates for the third time since July. That could lower
the range for the Fed's benchmark rate below the equivalent rate
for the Bank of Canada of 1.75%.
    Canadian government bond prices were higher across the yield
curve, with the two-year            up 4.5 Canadian cents to
yield 1.602% and the benchmark 10-year             rising 20
Canadian cents to yield 1.498%.
    The 10-year yield hit its lowest since Oct. 15 at 1.484%.

 (Reporting by Fergal Smith; Editing by David Gregorio)