* C$ edges up to C$0.9597 to the U.S. dollar, or $1.0420
* Bond prices pause after big gains
TORONTO, Aug 3 (Reuters) - The Canadian dollar edged higher on Wednesday morning, bouncing from two-week low hit overnight, but remained vulnerable to the global growth outlook, particularly in the United States.
The small gains lifted the currency from a fresh July 18 low at C$0.9635 to the U.S. dollar, or $1.0379, touched overnight after two straight days of weak U.S. data that put into question Canada's own growth prospects. The United States is Canada's largest trading partner.
There is a risk that the monthly U.S. ADP jobs figures, due at 8:15 a.m. EDT (1215 GMT), could extend the streak of soft U.S. data. Investors will monitor the ADP report for clues on the labor market ahead of Friday's non-farm payrolls data.
The price of oil, a key Canadian export, was also on the decline after ratings agency Moody's assigned a negative outlook to the United States, inflaming worries of falling demand as the world's top oil user and the euro zone continue to face long-term economic challenges.
The U.S. congressional passage of a deal saving the United States from default triggered fleeting relief amid investors, but focus remained on the longer term challenges for the world's largest economy and the euro zone's troubles.
"The drivers for CAD are somewhat mixed," Camilla Sutton, chief currency strategist at Scotia Capital. "The trading pattern in dollar/Canada is reflecting that."
At 7:48 a.m. (1148 GMT), the Canadian currency CAD=D4 was at C$0.9597 to the U.S. dollar, or $1.0420, up slightly from $0.9602 to the U.S. dollar, or $1.0414, at Tuesday's North American close.
Canadian bond prices were mostly lower, though hugged the breakeven mark across the curve, taking a breather after big gains in the previous session.
The pattern was similar to price movements in its U.S. counterparts, which also paused after hefty gains, but they are expected to extend gains soon in view of the bleak economic outlook. [US/]
The two-year Canadian government bond CA2YT=RR dipped 4 Canadian cents to yield 1.272 percent, while the 10-year bond CA10YT=RR fell 7 Canadian cents to yield 2.639 percent. The 30-year bond CA30YT=RR was unchanged to yield 3.167 percent. ( Reporting by Ka Yan Ng, Editing by W Simon )