(Adds dealer quotes, details throughout; updates prices)
* Canadian dollar at C$1.2865, or 77.73 U.S. cents
* Bond prices lower across yield curve
TORONTO, Nov 1 (Reuters) - The Canadian dollar edged higher against its U.S. counterpart on Wednesday after finding support near a more than three-month low hit last week, as the Federal Reserve left U.S. interest rates unchanged and investors braced for top-tier domestic data later in the week.
At 5 p.m. EDT (2100 GMT), the Canadian dollar was
trading at C$1.2865 to the greenback, or 77.73 U.S. cents, up 0.2 percent. The currency traded in a range of C$1.2855 to C$1.2910. It touched its weakest level in over three months at C$1.2916 on Friday. "We have seen some pretty good selling interest of Dollar-Canada on any move above C$1.29, hence why most of those moves above have been very, very short-lived," said Blake Jespersen, managing director, foreign exchange sales at BMO Capital Markets. Market participants have also been reluctant to engage in "active position-taking" ahead of domestic jobs data for October and September trade data, which are due on Friday, Jespersen noted. Canadian economic data on Wednesday showed that the pace of growth in the manufacturing sector slowed to a nine-month low in October. The currency had been pressured since September by domestic data pointing to a slower growth in the third quarter after rapid expansion in the economy in the first half of the year and In contrast, the Fed pointed to solid U.S. economic growth and a strengthening labor market, a sign it is on track to lift borrowing costs again in December. Prices of oil, one of Canada's major exports, dipped in seesaw trade after weekly U.S. government inventory data showed the latest crude stock draw was not as big as an industry trade group had reported.
U.S. crude prices settled 8 cents lower at $54.30 a
barrel. Canadian government bond prices were lower across the yield
curve, with the two-year down 4.5 Canadian cents to yield 1.416 percent and the 10-year falling 18
Canadian cents to yield 1.974 percent.
(Reporting by Fergal Smith, editing by G Crosse)