* C$ higher at 95.16 U.S. cents
* Bonds little changed across curve
* Investors await Canada GDP for October
By Jennifer Kwan
TORONTO, Dec 23 (Reuters) - The Canadian dollar climbed against the U.S. currency on Wednesday morning, lifted by firmer oil prices and rising expectations for a solid economic recovery.
World stocks rose in part on lingering effects of U.S. data on Tuesday that showed sales of previously owned homes jumped to the highest level in nearly three years last month, offering the latest evidence that the housing market -- the main trigger of the worst U.S. recession in 70 years -- is on the mend. [MKTS/GLOB]
"Our currency is bucking the general trend of other currencies weakening against the greenback. It's a North America play. We are seeing better economic numbers in Canada and the U.S.," Sal Guatieri, senior economist, BMO Capital Markets.
"The sense is if the U.S. economy is recovering that supports Canadian exports and our currency. We get a bigger bang for our buck from good U.S. economic data."
At 7:39 a.m. (1239 GMT), the Canadian dollar was at C$1.0509 to the U.S. dollar, or 95.16 U.S. cents, up from Tuesday's finish at C$1.0579 to the U.S. dollar, or 94.53 U.S. cents.
The price of oil, a key Canadian export, held steady above $74 a barrel as industry data showed a sharp drawdown in crude stocks and a surprise fall in gasoline supply. [O/R]
The move higher came ahead of domestic real gross domestic product data for October, due at 8:30 a.m. It is expected to build on strength from September and contribute to a healthier fourth-quarter reading of growth after Canada barely exited recession in the last quarter.
While ongoing optimism about the economic recovery in Canada and the U.S. added to positive momentum for the currency, market watchers cautioned that price moves across most markets are easily swayed by thin pre-holiday trade.
Canadian bond prices were little changed across the curve, in contrast to U.S. Treasuries, which edged higher. [US/]
"We have outperformed the U.S. Treasury market during its slide of the past week. The U.S. Treasury market has weakened considerably on the view that the U.S. economy is recovering and the (Federal Reserve) will need to raise rates next year," said Guatieri.
(Reporting by Jennifer Kwan, Editing by Chizu Nomiyama)