* Canadian dollar rises 0.9 pct to 92.51 U.S. cents
* Bonds higher across the curve
By Cameron French
TORONTO, June 2 (Reuters) - The Canadian dollar shot higher against the U.S. currency on Tuesday as upbeat U.S. economic data and early gains in stock markets spurred investors to sell greenbacks in favor of higher-risk currencies such as the Canadian dollar.
The currency finished at C$1.0810 to the U.S. dollar, or 92.51 U.S. cents, up from C$1.0910 to the U.S. dollar, or 91.66 U.S. cents, at Monday's close.
The Canadian dollar, which topped out at C$1.0789, or 92.69 U.S. cents, has risen for four straight sessions.
George Davis, chief technical analyst at RBC Capital Markets, said rising stock prices and strong economic data convinced investors who had sought the relative safety of the U.S. dollar during the worst of the economic crisis to reverse their bets.
Now, signs of an economic recovery are boosting the Canadian dollar, whose fortunes are more closely tied to resources such as oil and base metals.
"Risk aversion is first and foremost in the minds of investors, and people are generally taking their cues from the equity markets," Davis said.
"That backdrop, really since early March, has been a positive for the Canadian dollar."
U.S. stocks rose modestly on Tuesday, spurred by data showing U.S. pending home sales rose 6.7 percent in April.
Canadian stocks, which hit a seven-month high on Monday, rose early on Tuesday before easing at the close.
The main event for the currency this week will be the Bank of Canada's interest-rate announcement on Thursday.
The central bank is expected to leave interest rates unchanged at 0.25 percent, in line with its conditional commitment to keep rates low until middle of 2010.
Despite the unlikelihood of a rate move, the bank's statement could still have a big impact on the currency, said Davis, as the bank could signal concern with the Canadian dollar's rapid rise.
"I think if they don't say anything (about it), it's going to be a green light to keep buying Canada," he said.
Canadian bond prices edged higher across the curve, moving roughly in line with U.S. treasuries, which ended higher after bargain-hunters rushed into buy on early weakness.
The benchmark two-year government bond rose 8 Canadian cents to C$100.05 to yield 1.227 percent, while the 10-year bond gained 37 Canadian cents to C$102.77 to yield 3.420 percent.
The 30-year bond rose 60 Canadian cents to C$116.55 to yield 4.011 percent. (Reporting by Cameron French; editing by Rob Wilson)