* C$ rises to $1.0046 U.S. cents
* U.S. ADP report shows better-than-expected job gains
* Bonds prices fall across curve
(Recasts after ADP jobs data)
TORONTO, Jan 5 (Reuters) - The Canadian dollar climbed back
above parity against the greenback on Wednesday after the U.S.
ADP national employment report showed a much better than
expected gain in private sector jobs for December.
Following the data, the currency
touched a session
high of C$0.9954 to the U.S. dollar, or $1.0046, up from about
C$1.0011, or 99.89 U.S. cents just before the release.
The Canadian dollar had been lagging for a second straight
day on the back of dissipating risk appetite in commodity and
"We're in a scenario now where any fundamental U.S. number
that is positive is actually perceived to be more positive for
Canada," said Firas Askari, head of foreign exchange trading at
BMO Capital Markets, noting that the Canadian dollar was
outperforming against other major currencies.
U.S. private employers added 297,000 jobs in December,
according to the ADP Employer Services report, nearly triple
"The perception is that the headwinds in the Canadian
economy are not really domestic but primarily U.S.," Askari
"This is potentially a beginning of a trend of a pickup in
employment growth, which leads to housing and everything else,
which leads to us exporting more of our great commodities.
That's the logic."
At 9:04 a.m. (1404 GMT), the Canadian dollar
at C$0.9957 to the U.S. dollar, or $1.0043 U.S. cents, up from
Tuesday's finish at C$0.9985 to the U.S. dollar, or $1.0015.
Askari said the next support level for the U.S. dollar is
the Monday low of C$0.9889.
Official monthly employment reports on Friday are next in
focus, with job growth expected in both the United States and
Canada. U.S. Federal Reserve Chairman Ben Bernanke's
congressional testimony on Friday will also be closely
Canadian government bond prices retreated after the data,
tracking U.S. Treasuries lower. The two-year bond
was down 5 Canadian cents to yield 1.747 percent, while the
10-year bond shed 75 Canadian cents to yield 3.226
(Reporting by Jeffrey Hodgson)