*

Loonie trades in a range of 1.3980 to 1.4004

*

Advance estimate shows retail sales down 0.7% in September

*

Oil jumps 5.8% as U.S. imposes sanctions on Russian

suppliers

*

Bond yields edge higher across the curve

By Fergal Smith

TORONTO, Oct 23 (Reuters) - The Canadian dollar edged

lower against its U.S. counterpart on Thursday as mixed domestic

retail sales data offset a jump in oil prices.

The loonie was trading nearly unchanged at 1.3995 per

U.S. dollar, or 71.45 U.S. cents, after moving in a range of

1.3980 to 1.4004. On Wednesday, the currency touched a 12-day

high at 1.3974.

Canadian retail sales grew by 1% in August, matching

expectations, after falling 0.7% in July, as consumers spent

more on new cars, at supermarkets and for clothing. An advance

estimate for September was less upbeat, showing a decline

of 0.7%.

"Despite a decent August report, the disappointing September

flash highlights the underlying weakness in Canadian retail

spending," Shelly Kaushik, a senior economist at BMO Capital

Markets, said in a note.

"Plus, net risks remain to the downside given ongoing trade

uncertainty, keeping the Bank of Canada on its dovish path."

Canada will not allow unfair U.S. access to its markets if

talks on various trade deals with Washington ultimately fail,

Prime Minister Mark Carney told reporters.

Investors expect the Bank of Canada to cut interest rates

further in a policy decision next Wednesday. Last month, the

central bank lowered its benchmark rate to a three-year low of

2.50%.

The U.S. dollar rose against a basket of major

currencies as traders waited for the delayed release of U.S.

consumer inflation data on Friday.

The price of oil, one of Canada's major exports,

surged 5.8% to $61.87 a barrel after the U.S. imposed sanctions

on major Russian suppliers.

Canadian bond yields edged higher across a steeper curve,

tracking moves in U.S. Treasuries. The 10-year was

up 1.4 basis points at 3.084%.