CANADA FX DEBT-Loonie rises to 10-day high as payroll earnings accelerate

    * Canadian dollar gains 0.2% against the greenback
    * Loonie touches a 10-day high at 1.3232
    * Canadian July average weekly earnings rise 2.7%
    * Canadian bond prices climb across a flatter yield curve

    By Fergal Smith
    TORONTO, Sept 26 (Reuters) - The Canadian dollar
strengthened to a 10-day high against the greenback on Thursday
as investors grew more optimistic on trade talks between the
United States and China and after domestic data showed a pick up
in employee earnings.
    At 9:11 a.m. (1311 GMT), the Canadian dollar          was
trading 0.2% higher at 1.3244 to the greenback, or 75.51 U.S.
cents. The currency touched its strongest intraday level since
Sept. 16 at 1.3232.
    Canadian average weekly earnings rose by 2.7% year-over-year
in July after a 2.1% gain in June, while the number of non-farm
payroll employees increased by 75,400, data from Statistics
Canada showed.
    Stronger-than-expected wholesale trade and payrolls data
"should have forecasts for next week's monthly GDP release
moving up into positive territory and keeping Q3 tracking around
the 2% mark," Royce Mendes, a senior economist at CIBC Capital
Markets, said in a note.
    Data on Monday showed that Canadian wholesale trade
increased by 1.7% in July from June, surprising economists who
had forecast a 0.1% decrease. 
    Meanwhile, global stocks          rose on Wednesday as
Beijing said it in close communication with the United States
and was preparing to make progress with their trade talks in
    Canada exports many commodities, including oil, so its
economy could benefit from an improved outlook for global trade.
    Still, moves by Saudi Arabia to restore output quickly after
attacks on its oil installations offset optimism on trade, with
U.S. crude oil futures        falling 0.9% to $55.98 a barrel.
    Canadian government bond prices were higher across a flatter
yield curve, with the two-year            up 4 Canadian cents to
yield 1.574% and the 10-year             rising 32.6 Canadian
cents to yield 1.370%.
    On Wednesday, the 10-year yield hit its lowest intraday
level since Sept. 6 at 1.289%.      

 (Reporting by Fergal Smith
Editing by Nick Zieminski)