DJ Canadian Dollar Consolidates Ahead of BOC Rate Decision Mar 05, 2013 (Dow Jones Commodities News via Comtex) -- By David George-Cosh TORONTO -- The Canadian dollar is little changed Tuesday morning as traders consolidate their positions on the currency ahead of the Bank of Canada releasing its next overnight policy rate decision the following day. The U.S. dollar was at C1.0272 Tuesday morning, from C1.0271 late Monday, according to data provider CQG. The Bank of Canada will announce its decision on interest rates on Wednesday. It's widely expected to keep its overnight target rate steady at 1.00% despite a round of weak indicators in Canada which has helped weaken the Canadian dollar by 3.6% since the central bank's last meeting. The loonie could retrace some of its losses if the Bank of Canada opts to retain the mild tightening bias that indicated that the withdrawal of monetary policy stimulus is "less imminent than previously anticipated," said BNP Paribas in a research note. "We think Wednesday. [the Bank of Canada] may not match up to already ramped up dovish expectations," BNP Paribas said. There is only one major release scheduled for the North American session, with the gauge of U.S. non-manufacturing activity expected to report a slight decline to 55.0 in February, from 55.2 in the prior month. The Australian dollar is strong heading into the morning session, after the Reserve Bank of Australia maintained its policy rate at 3.00%, as expected, while maintaining a somewhat dovish tone with a reference to continue to provide "scope to ease policy further." Write to David George-Cosh at david.george-cosh@dowjones.com (END) Dow Jones Newswires

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