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Canadian dollar falls 0.4% against the greenback

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Touches its weakest since August 22 at 1.3896

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Advance estimate shows factory sales down 1.5% in August

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Bond yields rise across the curve

By Fergal Smith

TORONTO, Sept 24 (Reuters) - The Canadian dollar

weakened to a one-month low against its U.S. counterpart on

Wednesday as broad-based gains for the greenback offset higher

oil prices.

The loonie was trading 0.4% lower at 1.3885 per U.S.

dollar, or 72.02 U.S. cents, after touching its weakest intraday

level since August 22 at 1.3896.

"USD-CAD is tracking the broader recovery that we have seen

in the USD in the past week," said George Davis, chief technical

strategist at RBC Capital Markets.

"With the USD poised to register bullish short-term

breakouts against EUR and GBP today, USD-CAD has pierced a

resistance level at 1.3874, which has added to upward momentum

in the pair as it moves to a one-month high."

The U.S. dollar gained against a basket of major currencies,

supported by Federal Reserve Chair Jerome Powell's cautious tone

on further easing.

The price of oil was up 1.9% as U.S. crude inventory

data added to a sense in the market of tightening supplies. Oil

is one of Canada's major exports.

Canadian factory sales fell 1.5% in August from July,

largely driven by lower sales in the transportation equipment as

well as the food product subsectors, preliminary data showed.

July GDP data, due on Friday, could offer additional clues

on the state of the domestic economy which has been buffeted by

trade uncertainty. Economists expect a gain of 0.1%.

Canadian Prime Minister Mark Carney said on Tuesday that

trade negotiations with the U.S. were ongoing, and a lot of the

remaining issues would move to a forthcoming review of the

United States-Mexico-Canada trade agreement (USMCA).

Canadian bond yields moved higher across the curve, tracking

moves in U.S. Treasuries. The 10-year was up 1.6

basis points at 3.202%.