* C$ rises to C$1.0210 vs US$, or 97.94 U.S. cents
* Bonds prices fall across curve
By Claire Sibonney
TORONTO, Sept 27 (Reuters) - The Canadian dollar rallied against the U.S. currency on Tuesday alongside equities and commodity prices as European officials discussed new action to cut Greece's debt and recapitalize the region's banks.
The officials were seen to be considering plans to boost the size of the European Financial Stability Facility bailout fund and recapitalize banks, which could also help lower yields of Italian and Spanish bonds. For details, see [ID:nL5E7KR1CV]
As well, Greek lawmakers were expected to approve a deeply unpopular property tax to open the way for the return of international lending inspectors and the release of vital aid despite growing anger sweeping the austerity-hit nation. [ID:nL5E7KR0FY]
"We're waiting for some pretty important developments still, but I think the market has obviously taken a little bit of a more positive turn in the last two days, and with that Canada has done a little bit better," said Steve Butler, director of foreign exchange trading at Scotia Capital, noting a big spike up in commodity prices.
Prices for oil, gold and copper -- key Canadian exports -- were all sharply higher. [O/R] [GOL/] [MET/L]
At 8:35 a.m. (1235 GMT), the Canadian dollarstood at C$1.0210 to the U.S. dollar, or 97.94 U.S. cents, up from C$1.0283 to the U.S. dollar, or $97.25 U.S. cents, during Monday's North American session.
Butler noted the Canadian dollar broke through important resistance in the C$1.0220-25 area, and that markets would be disappointed with a close weaker than that level.
The next resistance comes in around C$1.0140 and C$1.0085, which marked the currency's low on the day it began its steep selloff last week.
Bond prices slipped across the curve as risk sentiment improved. The two-year Canadian government bondwas down 10 Canadian cents to yield 0.980 percent, while the 10-year bond dropped 58 Canadian cents to yield 2.212. percent. (Reporting by Claire Sibonney; editing by Jeffrey Benkoe)
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