(Adds analyst quotes and details throughout; updates prices)

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Canadian dollar weakens 0.8% against the greenback

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Touches its weakest since Jan. 6 at 1.35

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Canadian producer prices decline 1.1% in December

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10-year yield hits a six-week low at 2.724%

TORONTO, Jan 18 (Reuters) - The Canadian dollar tumbled to its lowest level in nearly two weeks against its U.S. counterpart on Wednesday as U.S. economic data fueled concern that an expected slowdown in activity would happen at a pace that was too rapid for investors to handle.

The loonie was trading 0.8% lower at 1.3495 to the greenback, or 74.10 U.S. cents, its sharpest decline since Dec. 15. It touched its weakest level since Jan. 6 at 1.35.

"The market is starting to worry about a harder landing in the global economy," said Adam Button, chief currency analyst at ForexLive.

Wall Street shares and bond yields fell as U.S. retail sales, producer prices and factory production declined more than expected in December.

Canada sends about 75% of its exports to the United States, including oil, which settled 0.9% lower at $79.48 a barrel.

"U.S. retail sales numbers were a disappointment," Button said. "The market wants to see a softening in economic indicators, but it's begun to go beyond a softening and towards a worrisome stop."

Canadian producer prices were also lower in December. They fell 1.1% from the previous month, while the annual rate of growth eased to 7.6% from 9.4%.

This follows data on Tuesday showing that consumer prices rose at the slowest annual pace since February last year.

The Bank of Canada has been hiking rates aggressively to tackle inflation. Money markets see about a 70% chance that the central bank would tighten by a further 25 basis points when it makes its policy decision next Wednesday.

Canadian government bond yields were sharply lower across a flatter curve, tracking the move in U.S. Treasuries. The 10-year fell 13.6 basis points to 2.724%, its lowest level since Dec. 7. (Reporting by Fergal Smith; Editing by Emelia Sithole-Matarise and Jonathan Oatis)