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CANADA FX DEBT-C$ rises as U.S.-China trade commitment bolsters sentiment

    * Canadian dollar advances 0.3% against the greenback
    * Loonie trades in a range of 1.3177 to 1.3239
    * Price of U.S. oil increases nearly 2%
    * Canadian bond yields rise across a steeper curve

    TORONTO, Aug 25 (Reuters) - The Canadian dollar gained
against its broadly weaker U.S. counterpart on Tuesday, as oil
prices rose and signs of calming in trade relations between the
United States and China bolstered investor sentiment.    
    U.S. crude        prices were up nearly 2% at $43.47 a
barrel, supported by production cuts in the U.S. Gulf Coast as
Tropical Storm Laura was forecast to become a major hurricane.
            
    Canada is a major exporter of oil and other commodities, so
the loonie tends to be sensitive to the global flow of trade and
capital.        
    Shares rose globally          after top U.S. and Chinese
officials reaffirmed their commitment to the Phase One trade
deal agreed in January. It was seen as a positive sign after
months of disputes over the coronavirus pandemic, China's
national security law and Chinese technology firms.             
    The Canadian dollar        was trading 0.3% higher at 1.3181
to the greenback, or 75.87 U.S. cents. The currency, which on
Monday touched a four-month low intraday at 1.3130, traded in a
range of 1.3177 to 1.3239.
    The U.S. dollar        fell against a basket of major
currencies as better-than-expected German economic data boosted
the euro.             
    Bank of Canada Deputy Governor Lawrence Schembri will speak
by video conference to the Canadian Association of Business
Economics at 1:30 p.m. ET (1730 GMT).
    The governor of the central bank, Tiff Macklem, is scheduled
to participate in a Federal Reserve Bank of Kansas City panel
discussion on Thursday about crisis management during the
coronavirus pandemic.
    Canadian government bond yields were higher across a steeper
curve in sympathy with U.S. Treasuries on Tuesday. The 10-year
yield             was up 4 basis points at 0.601%, after hitting
on Monday its lowest intraday level in nearly two weeks at
0.532%.

 (Reporting by Fergal Smith; Editing by Bernadette Baum)
  
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