By Jennifer Kwan TORONTO (Reuters) - The Canadian dollar touched its weakest level in nearly three weeks against the greenback on Tuesday on worries about China growth and bank repayments to the European Central Bank. World stocks hit a 2-1/2 week low on Tuesday while oil and the euro also skidded on concern about the funding situation of banks about to repay 442 billion euros ($545.5 billion) to the European Central Bank. The euro hit a lifetime low against the Swiss franc and an 8 1/2-year trough versus the yen on Tuesday. Another factor driving risk aversion overnight was a statement released on Monday by the Conference Board, citing a calculation error, analysts said. It corrected China's April leading economic indicator to reflect a rise of 0.3 percent, rather than a rise of 1.7 percent. "That clearly had a negative impact on global sentiment and we saw riskier assets selling across the board heavily impacting your commodity based currencies -- Aussie, Kiwi and Canada selling off overnight," said Matthew Strauss, senior currency strategist at RBC Capital Markets. While the data is second tier, it highlights the fragility of the global economic recovery, added Strauss. "We do expect China to slowdown but what is uncertain is how much will the economy slowdown and how quickly will it slowdown going into the second half of the year," he said. "The market is very sensitive to any indication it might slowdown quicker than anticipated." At 8:24 a.m., the Canadian dollar was at C$1.0499 to the U.S. dollar, or 95.25 U.S. cents, down sharply from Monday's finish at C$1.0358 to the U.S. dollar, or 96.54 U.S. cents. Earlier on Tuesday, it touched a low of C$1.0510 to the U.S. dollar, it's weakest since June 9. Strauss said a key technical level to watch for is C$1.0679 to the U.S. dollar, which is an early June intraday low for the Canadian currency. Canadian government bond prices firmed across the board, tracking U.S. Treasuries where yields hit a record low on weak Asian stock performance and euro zone banking worries. The two-year government bond was up 5 Canadian cents to yield 1.478 percent, while the 10-year bond rose 24 Canadian cents to yield 3.137 percent. (Reporting by Jennifer Kwan; Editing by Theodore d'Afflisio)

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