* Canadian dollar falls from 2009 high as oil weakens
* Bond prices mostly stronger (Adds details, quotes)
TORONTO, May 5 (Reuters) - The Canadian dollar weakened against the greenback on Tuesday after reaching its highest level in nearly six months, pressured by a similar reversal in the price of oil and soft equity markets.
The currency has recently traded alongside equity and commodity markets, which have risen as investors bought riskier assets on optimism the global recession is easing.
But North American equity markets were little changed to softer on Tuesday, as some investors sold to secure recent gains. And crude pricesfell after hitting a 2009 high as bulging oil inventories and falling energy demand outweighed fragile hopes for an economic recovery. [ID:nSP351504]
"It's a bit of a pause after a sharp move but sentiment is still in the market that dollar/Cad should head lower and the Canadian dollar should still head higher," said David Watt, senior currency strategist RBC Capital Markets.
At 1918 GMT, the Canadian unit was at C$1.1759 to the U.S. dollar, or 85.04 U.S. cents, down from C$1.1735 to the U.S. dollar, or 85.22 U.S. cents, at Monday's close.
Earlier in the session, the Canadian currency hit C$1.1677 to the U.S. dollar, or 85.64 U.S. cents, its highest since Nov. 10.
Equity markets fell back and the U.S. dollar rebounded ahead of Thursday's European Central Bank meeting and results of stress tests on U.S. banks, which may show about half of the 19 biggest banks under review need to raise more capital. [ID:nN04395186]
With no major Canadian economic data out on Tuesday, markets are watching for employment data, the Ivey Purchasing Managers' Index, and housing reports later this week. As well, U.S. employment figures are due on Friday.
Canadian bond prices were mostly firmer. Bonds had been flat to lower in recent days as equity markets rose to their best levels in nearly six months. (Additional reporting Ka Yan Ng; Editing by Jeffrey Hodgson)
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