* C$ bounces back after Tuesday's 1.6 percent skid
* Hope for economic rebound gives modest bid to C$
* Bond prices mostly down ahead of U.S. mortgage plan
By Frank Pingue
TORONTO, Feb 18 (Reuters) - Canada's dollar rallied versus the greenback on Wednesday as traders who are banking on a global economic rebound this year viewed the currency's skid in the previous session as a buying opportunity.
The turnaround in the Canadian dollar came alongside other commodity-linked currencies that were sent higher, helped by oil prices that, while lower, did not add significantly to their near 7-percent fall on Tuesday.
During Tuesday's session, concerns about a deepening global recession curbed investor appetite for risk and gave a boost to the low-yielding greenback. But the momentum faded overnight.
"We do have a lot of people ... thinking that things are going to get better and so people are prepared to take some of the risky currencies on board," said David Watt, senior currency strategist at RBC Capital Markets.
"I'm still at the point where I'm not convinced that we are going to get a second-half rebound ... but people are looking for reasons to be optimistic on certain currencies."
Canada's economy relies heavily on exports, so a rebound in the global economy is key to its currency's performance. The Canadian dollar has fallen about 15 percent since October.
At 9:30 a.m. (1430 GMT), the Canadian currency was at C$1.2566 to the U.S. dollar, or 79.58 U.S. cents, up from C$1.2637 to the U.S. dollar, or 79.13 U.S. cents, at Tuesday's close.
Earlier, the Canadian dollar rallied as high as C$1.2535, or 79.78 U.S. cents, comfortably off the near one-month low of C$1.2675, or 78.89 U.S. cents, touched on Tuesday.
Data that showed Canada's wholesale trade fell 3.4 percent in December from November, the biggest decrease in more than five years and steeper than analysts had predicted, did not have any noticeable impact on the currency.[ID:nN18424182]
"Canadian data overall in this situation isn't really going to have a huge impact," Watt said. "This data is so dated and it plays into the story that we already know."
The Bank of Canada has said Canada's economy will suffer a 4.8 percent contraction, annualized, in the first quarter of 2009, and likely shrank in the fourth quarter of 2008.
BOND PRICES DOWN AT SHORT END
Canadian bond prices, with no key data to trigger a move, followed the bigger U.S. Treasury market down across the short end ahead of the announcement of U.S. President Barack Obama's plan to help troubled homeowners.
The plan, which Obama is due to unveil at 12:15 p.m. will establish a $75 billion homeowner stability initiative that will help keep between 3 million and to 4 million "responsible homeowners" in their homes. [ID:nN18421041]
Canadian data still due this week are January's composite leading indicator on Thursday and the key consumer price index report for January due on Friday.
The interest-rate sensitive two-year bond was down 11 Canadian cents at C$102.65 to yield 1.238 percent, while the 10-year bond dropped 10 Canadian cents to C$111.60 to yield 2.819 percent.
The 30-year bond was up 25 Canadian cents at C$125.90 to yield 3.542 percent. (Editing by Peter Galloway)