TORONTO (Reuters) - The Canadian dollar was little changed against the U.S. dollar on Wednesday, trading in a narrow range, as the market watched key technical levels and awaited direction from domestic economic data.
Bond prices were down slightly.
At 8:45 a.m. (1345 GMT), the currency was at C$1.1830 to the U.S. dollar, or 84.53 U.S. cents, down from C$1.1827 to the U.S. dollar, or 84.55 U.S. cents, at Tuesday's close.
After dropping to 14-month lows last week, the Canadian unit has wavered in a tight range, largely ignoring rising oil prices that normally tend to boost the commodity-linked currency.
Light U.S. crude oil futures were up 0.9 percent at $59.39 per barrel on Wednesday, but analysts said the currency's focus was on domestic economic factors.
"Above all else, we're waiting for some direction from the interest rate markets on the back of the (January) employment report on Friday," said Adam Cole, senior currency strategist at RBC Capital Markets in London.
Strong data early last month and statements from the Bank of Canada have convinced economists that interest rates will remain unchanged in the foreseeable future, rather than be cut by the central bank, as had previously been expected.
The market will also be watching January housing starts, due on Thursday.
Cole said speculation about whether the Group of Seven rich nations will issue a statement on the Japanese yen this weekend wasn't having much impact on the Canadian-U.S. dollar pair.
Analysts said the C$1.1850-C$1.1867 area was key for the currency, and could provide support.
BONDS LOWER
Bond prices eased just a little, as direction was seen coming from the U.S. quarterly refunding auctions.
The U.S. Treasury will auction $13 billion of 10-year notes on Wednesday and $9 billion of 30-year notes on Thursday.
The two-year bond eased 1 Canadian cent to C$100.29 to yield 4.083 percent, while the 10-year slipped 2 Canadian cents to C$99.00 to yield 4.130 percent.
The yield spread between the two-year and 10-year bond moved to 4.7 basis points from 5.0 at the previous close.
The 30-year bond retreated 5 Canadian cents to C$124.95 to yield 4.177 percent. In the United States, the 30-year treasury yielded 4.879 percent.
The three-month when-issued T-bill yielded 4.17 percent, unchanged from the previous close.
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