* Canadian dollar at C$1.3240, or 75.53 U.S. cents
* Loonie touches its weakest since Friday at C$1.3307
* Bond prices higher across the maturity curve
TORONTO, Oct 13 The Canadian dollar edged higher
against its U.S. counterpart on Thursday as the greenback pared
some recent gains and oil firmed.
The U.S. dollar dipped against a basket of major
currencies, but posted a 7-month high intraday after minutes on
Wednesday from the last U.S. Federal Reserve meeting left a
December interest rate hike in play.
Gains for the commodity-linked loonie were restrained as a
sharp decline in China's exports revived concerns about the
health of the world's second-biggest economy and weighed on
global stock markets.
U.S. crude prices were up 0.18 percent to $50.27 a
barrel, gaining support from record Chinese imports.
At 9:18 a.m. EDT (1318 GMT), the Canadian dollar
was trading at C$1.3240 to the greenback, or 75.53 U.S. cents,
stronger than Wednesday's close of C$1.3259, or 75.42 U.S.
The currency's strongest level of the session was C$1.3238,
while it touched its weakest since Friday at C$1.3307, just shy
of the more-than six-month low set on Friday at C$1.3315.
New home prices in Canada rose 0.2 percent in August,
following a 0.4 percent monthly increase in July, Statistics
Canada said. It left the index up 2.7 percent from a year
Separately, the Teranet-National Bank Composite House Price
Index showed national home prices rose 0.8 percent last month
from August. Prices were up 11.7 percent from a year earlier.
Canadian government bond prices were higher across the yield
curve in sympathy with Treasuries as the disappointing Chinese
data spurred risk aversion. The two-year rose 1.7
Canadian cents to yield 0.594 percent and the benchmark 10-year
climbed 10 Canadian cents to yield 1.186 percent.
The 10-year spread versus Treasuries narrowed 1.9 basis
points to -56.2 basis points as Treasuries outperformed.
Germany's Constitutional Court cleared the government to
approve a trade accord between the European Union and Canada
under defined conditions, boosting the agreement's chances of
passing an EU vote next week.
(Reporting by Fergal Smith; Editing by Nick Zieminski)