* Loonie trades in range of 1.2652 to 1.2738 * Currency heads for weekly decline of 0.2% * Price of U.S. oil falls 0.8% * Canadian bond yields ease across flatter curve TORONTO, Oct 1 (Reuters) - The Canadian dollar hardly moved against its U.S. counterpart on Friday as oil prices fell and domestic data showed the economy shrinking in July, leaving the currency on track to edge lower for the week as the greenback broadly climbed. Canada"s economy contracted 0.1% in July, weighed by a decline in the goods-producing sector, data from Statistics Canada showed. A preliminary estimate showed GDP increasing 0.7% in August. The price of oil, one of Canada"s major exports, fell on the prospect that OPEC+ producers might step up a planned increase in output to ease supply concerns. U.S. crude prices fell 0.8% to $74.44 a barrel, while the Canadian dollar was nearly unchanged at 1.2675 per greenback, or 78.90 U.S. cents. The currency traded in a range of 1.2652 to 1.2738. For the week, the loonie was down 0.2%. It weakened 0.5% in September, its fourth straight monthly decline. The U.S. dollar headed for its best week since June as investors expected a hawkish-sounding Federal Reserve to lift U.S. interest rates sooner than some major peers. Canadian government bond yields were lower across a flatter curve as trading resumed following Thursday"s public holiday. The 10-year eased 5 basis points to 1.458%, tracking the move lower in U.S. Treasury yields. On Tuesday, it touched its highest in nearly four months at 1.526%. (Reporting by Fergal Smith Editing by Mark Heinrich) Our Standards: The Thomson Reuters Trust Principles.