* Canadian dollar advances 0.3% against the greenback * Loonie trades in a range of 1.3177 to 1.3239 * Price of U.S. oil increases nearly 2% * Canadian bond yields rise across a steeper curve TORONTO, Aug 25 (Reuters) - The Canadian dollar gained against its broadly weaker U.S. counterpart on Tuesday, as oil prices rose and signs of calming in trade relations between the United States and China bolstered investor sentiment. U.S. crude prices were up nearly 2% at $43.47 a barrel, supported by production cuts in the U.S. Gulf Coast as Tropical Storm Laura was forecast to become a major hurricane. Canada is a major exporter of oil and other commodities, so the loonie tends to be sensitive to the global flow of trade and capital. Shares rose globally after top U.S. and Chinese officials reaffirmed their commitment to the Phase One trade deal agreed in January. It was seen as a positive sign after months of disputes over the coronavirus pandemic, China's national security law and Chinese technology firms. The Canadian dollar was trading 0.3% higher at 1.3181 to the greenback, or 75.87 U.S. cents. The currency, which on Monday touched a four-month low intraday at 1.3130, traded in a range of 1.3177 to 1.3239. The U.S. dollar fell against a basket of major currencies as better-than-expected German economic data boosted the euro. Bank of Canada Deputy Governor Lawrence Schembri will speak by video conference to the Canadian Association of Business Economics at 1:30 p.m. ET (1730 GMT). The governor of the central bank, Tiff Macklem, is scheduled to participate in a Federal Reserve Bank of Kansas City panel discussion on Thursday about crisis management during the coronavirus pandemic. Canadian government bond yields were higher across a steeper curve in sympathy with U.S. Treasuries on Tuesday. The 10-year yield was up 4 basis points at 0.601%, after hitting on Monday its lowest intraday level in nearly two weeks at 0.532%. (Reporting by Fergal Smith; Editing by Bernadette Baum)
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