CANADA FX DEBT-C$ tilts lower ahead of key jobs data

* C$ ends at C$1.0658 per U.S. dollar

* Bond prices end down as stocks lure investors

* Markets await Friday's U.S., Canada October jobs data (Recasts)

TORONTO, Nov 5 - Canada's dollar ended slightly lower versus the U.S. currency in a muted session on Thursday as traders avoided big commitments ahead of key jobs data due on Friday from Canada and the United States.

The Canadian dollar, coming off a string of three straight higher closes, spent the North American session in a range of C$1.0606 to the U.S. dollar and C$1.0669 to the U.S. dollar.

"I think the market is just waiting for the employment data tomorrow to be honest," said David Bradley, director of foreign exchange trading Scotia Capital. "The Canadian employment data often surprises to the upside but I wouldn't be surprised if we have a downward surprise this time."

Market watchers will study Friday's employment reports from Canada and the United States for further clues on the strength of the economic recovery. The Canadian report is expected to show the economy added 10,000 jobs in October. [ID:nN04446691]

Also weighing on the Canadian currency was a slide in gold prices from the record high hit in the last session and a drop in oil prices of nearly 1 percent. Oil and gold are considered key Canadian exports and their prices often influence moves in the currency.

The Canadian dollar closed at C$1.0658 to the U.S. dollar, or 93.83 U.S. cents, down from C$1.0638 to the U.S. dollar, or 94.00 U.S. cents, at Wednesday's close.

Bradley said that if the Canadian jobs data falls short of expectations, it could pull the Canadian dollar down through C$1.0685, which he felt could trigger stops and send it toward the C$1.0725-C$1.0750 area.

The Canadian dollar hit its session high early in the morning, shortly after data showed U.S. jobless claims fell and productivity rose at its fastest pace in six years. The reports helped spur investor appetite for riskier assets. [ID:nN05106320]

BOND PRICES DROP

Canadian bond prices ended a touch lower as investors piled into equities after the U.S. data helped bolster investor confidence in the economy.

Toronto's S&P/TSX composite index <.GSPTSE> rose 1 percent to 11,180.70. while the Dow Jones industrial average <.DJI> ended up 2 percent at 10,005.96.

Midway through the session, the Bank of Canada said its C$3.5 billion auction of 3.5 percent Government of Canada bonds due 2020 yielded an average 3.700 percent. [ID:nTOR006901]

The two-year bond <CA2YT=RR> fell 3 Canadian cents to C$99.65 to yield 1.423 percent, while the 10-year bond <CA10YT=RR> shed 36 Canadian cents to C$101.79 to yield 3.527 percent.