* C$ hits session high of C$0.9841 vs US$, or $1.0162 * Bond prices turn negative across curve * RBA surprises markets with 50 bps rate cut * US manufacturing picks up in April By Claire Sibonney TORONTO, May 1 (Reuters) - The Canadian dollar hit a session high against the greenback on Tuesday after stronger-than-expected U.S. data boosted assets with strong ties to economic growth in the United States, Canada's largest trading partner. The U.S. Institute for Supply Management report showed the pace of growth in the U.S. manufacturing sector picked up in April to its highest level in 10 months, suggesting the economy still had some resilience after indications it had lost momentum at the start of the second quarter. In the aftermath of the data, the currency rallied to C$0.9841 versus the U.S. dollar, or $1.0162, from around C$0.9887, or $1.0114 heading into the release. "This would largely be driven by the ISM," said Mazen Issa, Canada macro strategist at TD Securities. "Expectations were for it to retrench a little bit. I think even the internals of the report were fairly strong as well, so overall the very strong report would bode quite well for the Canadian dollar." The recovery for the Canadian dollar came after both Canada and Australia, whose economies are closely linked to demand in the global economy, disappointed markets with weaker than expected growth in Canada and a surprise 50-basis point rate cut by the Reserve Bank of Australia. Still, Canada's currency outperformed its commodity cousins, the Australian and New Zealand dollars, the main movers among the G10 currencies along with the Japanese yen. At 11:01 a.m. (1501 GMT), the Canadian dollar CAD=D4 stood at C$0.9844 against the U.S. dollar, or $1.0158, up from Monday's session close at C$0.9879 versus the U.S. dollar, or $1.0122. Matt Perrier, a director of foreign exchange sales at BMO Capital Markets, noted the next area of Canadian dollar resistance against its U.S. counterpart in the $0.9800-25 range. Against the Australian dollar, Scotia Capital pointed to resistance for the Canadian currency at C$1.0157. Canadian bond prices turned negative following the solid ISM data and continuing to outperform U.S. Treasuries. Canada's two-year bond eased 3 Canadian cents to yield 1.352 percent, while the benchmark 10-year bond fell 22 Canadian cents to yield 2.062 percent.