* C$ rises to $1.0429
* Bond prices slightly lower across curve
TORONTO, May 10 (Reuters) - The Canadian dollar edged higher against the U.S. dollar on Tuesday, supported by firmer commodity prices that rose on the back of robust China trade figures pointing to a stronger global economy.
China posted its biggest trade surplus in four months in April as exports hit a record on stronger global demand, highlighting strength in the world’s second largest economy despite its efforts to rein in inflation. [ID:nL3E7GA09F]
The data spurred advances in world stocks and lifted most commodity prices. Oil, however, was a key exclusion from the general rise. [MKTS/GLOB]
Oil prices fell partly because CME Group Inc (CME.O), the world’s largest commodities exchange, raised the margin call on crude futures for a fourth time since February in an effort to curb volatility. [O/R]
The price of oil typically is a key driver for the Canadian dollar because of Canada’s status as a net exporter of oil. But on Tuesday, the Canadian dollar was on the rise.
“That’s actually interesting despite the fact you’ve had the fall off in oil prices in the wake of the CME’s decision,” said Michael Gregory, senior economist at BMO Capital Markets.
“Despite the petroleum prices, Canada is getting a net benefit from commodities. And overall, global equities are stronger this morning heading into the open, and I think it’s a sign that risk appetite has been whetted.”
At 8:05 a.m. (1205 GMT), the Canadian dollar CAD=D4 was at C$0.9589 to the U.S. dollar, or $1.0429, up from Monday’s North American session close at C$0.9636 to the U.S. dollar, or $1.0378.
Canadian bond prices were slightly lower across the curve, owing to a pickup in risk sentiment. The two-year Canadian government bond CA2YT=RR was off 2 Canadian cents to yield 1.674 percent, while the 10-year bond CA10YT=RR dipped 3 Canadian cents to yield 3.198 percent.
(Reporting by Ka Yan Ng; Editing by Padraic Cassidy)