* C$ lower at 96.81 U.S. cents
* Bond prices lower, follow U.S. Treasuries
By Jennifer Kwan
TORONTO, Sept 28 (Reuters) - Canada's dollar fell against its U.S. counterpart on Tuesday, pressured by weak commodity prices and largely flat equity moves, remaining in a narrow range as investors looked for more guidance from economic data.
At 8:25 a.m. (1225 GMT), the Canadian dollar was at C$1.0330 to the U.S. dollar, or 96.81 U.S. cents, down from Monday's finish at C$1.0283 to the U.S. dollar, or 97.25 U.S. cents.
"It is some broad based U.S. dollar strength and weaker equities playing a role. Technically, it also seems the market is pretty much rangebound but that range is starting to drift higher with now C$1.03 at the bottom," said Matthew Strauss, senior currency strategist at RBC Capital Markets.
Also weighing on the currency was oil, a key Canadian export, which fell below $76 a barrel ahead of U.S. reports expected to show fuel stockpiles. Gold and base metals prices were also weaker.
"Since the start of the week we haven't had any significant development providing guidance for the market," he added. "The market is still looking for new direction."
Strauss said the underlying theme pervading markets is uncertainty about the strength of the global recovery in 2011.
The most recent areas of focus include any future quantitative easing by the Federal Reserve, even in a modest form, as well as concerns about euro zone banks and some countries' debts.
Strauss said technical levels to watch for on Tuesday included the day's key ranges of around C$1.0299 to the U.S. dollar and C$1.0362.
Canadian bond prices tracked U.S. Treasuries lower where prices eased after a Wall Street Journal report said the Federal Reserve was mulling a smaller and more open-ended bond-buying programme than in 2009.
The two-year bond was slipped 4 Canadian cents to yield 1.439 percent, while the 10-year bond edged 7 Canadian cents lower to yield 2.810 percent. (Reporting by Jennifer Kwan; Editing by Theodore d'Afflisio)