Loonie trades near flat

Investors assess trade pact

TORONTO (Reuters) - The Canadian dollar was little changed against the greenback on Wednesday as domestic data showed a drop in home sales and investors assessed the merit of a trade deal between the United States and China, which was due for signing later in the day.

World stocks eased off record highs as euphoria over a U.S.China trade deal was tempered by U.S. Treasury Secretary Steven Mnuchin saying tariffs on Chinese goods would remain in place for now.

Canada is a major exporter of commodities, including oil, so its economy could benefit from a more certain outlook for global trade.

Concern that the U.S.-China trade pact would not boost demand weighed on oil prices, with U.S. crude oil futures dipping 0.3% to $58.06 a barrel.

Canadian home sales fell 0.9% in December from the previous month, breaking a streak of monthly gains that began last March, the Canadian Real Estate Association said.

At 9:24 a.m. (1424 GMT), the Canadian dollar was trading nearly unchanged at 1.3063 to the greenback, or 76.55 U.S. cents. The currency, which last Thursday hit a near two-week low at 1.3104, traded in a range of 1.3057 to 1.3078.

The steady profile for the loonie on Wednesday comes ahead of a decision on interest rates and an updated economic outlook next week from the Bank of Canada. Money markets expect the central bank to leave its benchmark interest rate on hold at 1.75%.

Canadian government bond prices were higher across a flatter yield curve in sympathy with U.S. Treasuries. The two-year rose 2.5 Canadian cents to yield 1.652% and the 10-year was up 34 Canadian cents to yield 1.548%.