* Canadian dollar above par at $1.0009
* Muted volumes in bond market
TORONTO, Dec 31 (Reuters) - Canada's dollar pushed through a key level to hit its highest since mid-April against the U.S. currency on Friday in scant New Year's Eve trading volume.
The Canadian dollar reached C$0.9959 to the U.S. dollar, its highest since April 21, before trimming gains to around the C$0.9975 that had been the key support level.
Analysts said the break was under very thin trading conditions on the last day of the year, but a test of the technical support level at C$0.9931 to the U.S. dollar, reached in April, may be possible.
At 9:15 a.m. (1415 GMT), the Canadian dollar CAD=CAD=D3 was at C$0.9991 to the U.S. dollar, or $1.0009, up from Thursday's close at par with the U.S. dollar, which was the first finish at the one-for-one level since Nov. 10.
"The market does appear to have some optimism built into it, just like yesterday. We've seen a bit of a breakout in terms of the dollar/Canada range that has dominated in the last few sessions ... but it's thin and it's the year end," said Jack Spitz, managing director of foreign exchange at National Bank Financial.
Slim trading volumes ahead of the New Year's holiday may bring choppy conditions for the Canadian dollar but, overall, analysts expect the currency will hover around parity heading into 2011.
Commodity currencies including the Canadian dollar and the Australian dollar remained in favor on expectations that Asia will lead a robust global recovery in 2011. The price of oil, however, was softer on Friday but Canada's dollar held firm.
Canadian government bond prices were little changed in a quiet start to the last session of the year. Minimal volumes were expected with an early bond market close. The two-year bond CA2YT=RR was up 3 Canadian cents to yield 1.698 percent, while the 10-year bond CA10YT=RR was off 1 Canadian cent to yield 3.159 percent. (Reporting by Ka Yan Ng; Editing by James Dalgleish)