* Canadian dollar weakens 0.3% against greenback
* Loonie trades in a range of 1.2516 to 1.2575
* Price of U.S. oil rises 1.9%
* Canadian bond yields ease across flatter curve
TORONTO, April 6 (Reuters) - The Canadian dollar weakened
against its U.S. counterpart on Tuesday, with the loonie pulling
back from a two-week high a day before domestic economic data
that could offer clues on the Bank of Canada's policy outlook.
The loonie was trading 0.3% lower at 1.2560 to the
greenback, or 79.62 U.S. cents, having traded in a range of
1.2516 to 1.2575. On Monday, the loonie notched its strongest
intraday level since March 22 at 1.2497.
Canada's trade report for February is due on Wednesday,
while the March employment report is due on Friday.
Some strategists expect the Bank of Canada to reduce its
bond purchases when it makes its next interest rate announcement
on April 21. Such a move would put the Canadian central bank at
odds with some peers, including the Federal Reserve and European
Central Bank, which have said they will maintain or even
increase the pace of bond-buying.
The U.S. dollar steadied against a basket of major
currencies after a sell-off on Monday. The greenback was
supported by short-term optimism about the outlook for the U.S.
economy.
Strong economic data from China and the United States helped
to lift the price of oil, one of Canada's major exports,
recouping some of the previous session's losses, as
coronavirus-led volatility continues to dominate. U.S. crude
prices were up 1.9% at $59.76 a barrel.
Canadian government bond yields were lower across a flatter
curve in tandem with U.S. Treasuries. The 10-year
fell 3.4 basis points to 1.521%.
(Reporting by Fergal Smith
Editing by Paul Simao)
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