* C$ rises to $1.0046 U.S. cents
* U.S. ADP report shows better-than-expected job gains
* Bonds prices fall across curve
(Recasts after ADP jobs data)
By Claire Sibonney
TORONTO, Jan 5 (Reuters) - The Canadian dollar climbed back above parity against the greenback on Wednesday after the U.S. ADP national employment report showed a much better than expected gain in private sector jobs for December.
Following the data, the currency CAD=D4 touched a session high of C$0.9954 to the U.S. dollar, or $1.0046, up from about C$1.0011, or 99.89 U.S. cents just before the release.
The Canadian dollar had been lagging for a second straight day on the back of dissipating risk appetite in commodity and equity markets.
"We're in a scenario now where any fundamental U.S. number that is positive is actually perceived to be more positive for Canada," said Firas Askari, head of foreign exchange trading at BMO Capital Markets, noting that the Canadian dollar was outperforming against other major currencies.
U.S. private employers added 297,000 jobs in December, according to the ADP Employer Services report, nearly triple forecasts. [ID:nN05266445]
"The perception is that the headwinds in the Canadian economy are not really domestic but primarily U.S.," Askari said.
"This is potentially a beginning of a trend of a pickup in employment growth, which leads to housing and everything else, which leads to us exporting more of our great commodities. That's the logic."
At 9:04 a.m. (1404 GMT), the Canadian dollar CAD=D4 stood at C$0.9957 to the U.S. dollar, or $1.0043 U.S. cents, up from Tuesday's finish at C$0.9985 to the U.S. dollar, or $1.0015.
Askari said the next support level for the U.S. dollar is the Monday low of C$0.9889.
Official monthly employment reports on Friday are next in focus, with job growth expected in both the United States and Canada. U.S. Federal Reserve Chairman Ben Bernanke's congressional testimony on Friday will also be closely followed. [ID:nN31145126] ECON
Canadian government bond prices retreated after the data, tracking U.S. Treasuries lower. The two-year bond CA2YT=RR was down 5 Canadian cents to yield 1.747 percent, while the 10-year bond CA10YT=RR shed 75 Canadian cents to yield 3.226 percent. (Reporting by Jeffrey Hodgson)