(Adds strategist quotes, details throughout; updates prices)
* Canadian dollar weakens 0.4% against the greenback
* Price of copper falls 4%
* Loonie touches its weakest level since May 6 at 1.2204
* Canadian housing starts rise 3.2% in May
By Fergal Smith
TORONTO, June 15 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Tuesday as investors weighed
prospects of the Federal Reserve turning less dovish, with the
commodity-linked currency extending its pullback from a recent
six-year high.
The loonie was trading 0.4% lower at 1.2192 to the
greenback, or 82.02 U.S. cents, after earlier touching its
weakest level since May 6 at 1.2204. Earlier this month, it
touched its strongest in six years at 1.2007.
"We've had such a strong move with commodity currencies and
that trade has been slowly getting unwound," said Edward Moya, a
senior market analyst at OANDA in New York.
"We are starting to see a little bit more of an expectation
that you are going to have a slightly less dovish Fed tomorrow
and the commodity trade could continue to get undone a little
bit," Moya added.
In a new policy statement and economic projections due on
Wednesday, the Fed is expected to acknowledge the first
conversations among its policymakers about when and how fast to
pare back the massive bond-buying program launched last year.
The program has supported global economic recovery, boosting
commodity prices. Canada is a major producer of commodities,
including copper and oil.
Copper fell 4%, extending its pullback from a record
high in May. Oil settled 1.8% higher at $72.12 a barrel.
Canadian housing data for May was mixed. Housing starts
climbed 3.2% compared with the previous month, while home sales
were down for a second month after a blazing start to the year.
Canadian consumer price data is due on Wednesday, which
could offer clues on the Bank of Canada policy outlook.
The Canadian 10-year yield was little changed at
1.389%. On Monday, it touched its lowest intraday level in more
than three months at 1.365%.
(Reporting by Fergal Smith; Editing by Jonathan Oatis and Peter
Cooney)
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