CANADA FX DEBT-Canadian dollar lags G10 peers as stop-loss selling weighs

    (Adds strategist quotes and details throughout; updates prices)
    * Canadian dollar falls 0.1% against the greenback
    * Canadian retail sales rise 0.4% in August
    * Annual inflation rate rises to 0.5% in September
    * Canadian bond yields move higher across the curve

    By Fergal Smith
    TORONTO, Oct 21 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Wednesday as oil prices tumbled
and stop-loss orders were triggered in the market between it and
the Australian dollar, with the loonie pulling back from an
earlier six-week high.
    The Canadian dollar had rallied as much as 3.2% against the
Australian dollar        since the beginning of the month
    The move generated a lot of investor interest in selling the
AUD-CAD currency pair, before a "wicked reversal" which caused
some to abandon the trade, said Greg Anderson, global head of
foreign exchange strategy at BMO Capital Markets in New York.
    "I think that some of the stop-loss action in that cross may
be part of the weakness in CAD relative to the U.S. dollar,"
Anderson said.
    Stop-loss orders are used by investors to limit their risk
in a trade.
    The Canadian dollar        was trading 0.1% lower at 1.3134
to the greenback, or 76.14 U.S. cents. It was the only G10
currency to lose ground against the greenback as hopes rose for
a large U.S. coronavirus relief package and the price of oil,
one of Canada's major exports, fell.
    U.S. crude oil futures        settled 4% lower at $40.03 a
barrel after U.S. inventory figures showed demand weakening for
refined products as global COVID-19 cases spiked.
    Earlier in the session, the loonie touched its strongest
level since Sept. 7 at 1.3081.
    Canada's annual inflation rate accelerated to 0.5% in
September but softer-than-expected retail sales growth of 0.4%
month-over-month for August and a sluggish estimate for
September suggest a dampening heading into the holidays,
Statistics Canada data showed.
    Canadian government bond yields were higher across the curve
in sympathy with U.S. Treasuries. The 10-year             rose
nearly 1 basis point to 0.614%, having touched its highest since
Sept. 1 at 0.653%.

 (Reporting by Fergal Smith
Editing by Alistair Bell and Jonathan Oatis)

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