C$ dips ahead of influential central bank conference
* Canadian dollar weakens 0.2% against the greenback
* Flash estimate shows wholesale trade falling 0.6% in July
* Price of U.S. oil settles 1.2% higher
* 10-year yield touches its highest in nearly five weeks
By Fergal Smith
TORONTO, Aug 24 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Wednesday but was sticking within its recent range ahead of a key central bank conference this week and after preliminary domestic data showed wholesale trade falling in July.
The loonie CAD= was down 0.2% at 1.2975 to the greenback, or 77.07 U.S. cents, after trading in a range of 1.2954 to 1.3018. On Tuesday, it touched its weakest intraday level in nearly six weeks at 1.3063.
"The broader USD tone is really shaping CAD movement at the moment," strategists at Scotiabank, including Shaun Osborne, said in a note.
The U.S. dollar .DXY held near a 20-year high against a basket of major currencies as investors waited for a Friday speech by the Federal Reserve Chairman Jerome Powell at the Jackson Hole economic symposium in Wyoming for fresh clues on how aggressive the central bank will be in its battle against inflation.
Canadian wholesale trade likely fell 0.6% in July from June, dragged by lower sales of motor vehicles and motor vehicle parts, Statistics Canada said.
The data adds to recent evidence of economic growth cooling in the third quarter.
The price of oil, one of Canada's major exports, settled 1.2% higher at $94.89 a barrel as Iran received Washington's response to an EU-drafted final offer for saving Tehran's 2015 nuclear deal with major powers.
Canadian government bond yields were higher across the curve, tracking the move in U.S. Treasuries. The 10-year CA10YT=RR touched its highest in nearly five weeks at 3.129% before dipping to 3.099%, up 5.8 basis points on the day.
Reporting by Fergal Smith Editing by Bernadette Baum and Marguerita Choy