CANADA FX DEBT-Canadian dollar steadies as investors await evidence of stronger recovery

 (Adds strategist quotes and details throughout; updates prices)
    * Canadian dollar trades near flat against the greenback
    * Loonie touches its strongest in nearly two weeks at 1.3520
    * Price of U.S. oil settles 2 cents lower
    * Canadian bond yields dip across much of the curve

    By Fergal Smith
    TORONTO, July 6 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Monday after a Bank of
Canada business survey showed widespread negative sentiment,
with currency investors looking for evidence of a faster rebound
in economic growth.
    The loonie        was trading nearly unchanged at 1.3540 to
the greenback, or 73.86 U.S. cents. The currency touched its
strongest intraday level since June 23 at 1.3520.
    "The (FX) market is biding its time," said Amo Sahota,
director at Klarity FX. "It is looking for better economic data
to back up a stronger recovery."
    Business sentiment in Canada is "strongly negative" even as
coronavirus restrictions have eased, although roughly half the
companies surveyed expect their sales to recover to pre-pandemic
levels within 12 months, the Bank of Canada's Business Outlook
Survey showed.             
    Global stock markets          rallied to four-week highs as
investors counted on a revival in China to boost global growth,
even as surging coronavirus cases delayed business reopenings
across the United States.             
    Canada runs a current account deficit and is a major
producer of commodities, including oil, so the loonie tends to
be sensitive to the global flow of trade and capital.
    U.S. crude        oil futures settled 2 cents lower at
$40.63 a barrel on concern that a spike in coronavirus cases
could curb U.S. fuel demand.             
    Canada's employment report for June is due on Friday, while
Finance Minister Bill Morneau is due to present a fiscal
snapshot on Wednesday.
    Canada should focus on boosting economic growth after
getting pummeled by the COVID-19 crisis, analysts say, even as
concerns about the sustainability of its debt are growing, with
Fitch downgrading the nation's rating less than two weeks ago.
    Canadian government bond yields edged slightly lower across
much of the curve, with the 10-year             down less than
one basis point at 0.548%.

 (Reporting by Fergal Smith; Editing by Nick Zieminski and Peter