* Canadian dollar at C$1.2315, or 81.20 U.S. cents
* Bond prices mixed across a steeper yield curve
* Oil prices fall nearly 1 percent
TORONTO, Jan 30 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Tuesday as the greenback broadly fell ahead of U.S. President Donald Trump's State of the Union address and an interest rate decision by the Federal Reserve. At 9:13 a.m. EST (1413 GMT), the Canadian dollar was trading 0.2-percent higher at C$1.2315 to the greenback, or 81.20 U.S. cents. The currency traded in a range of C$1.2310 to C$1.2378. Last week, the loonie touched its strongest in more than four months at C$1.2283. Attention on Trump's address later in the day was mostly on his views on an infrastructure overhaul and trade, with the future of the North American Free Trade Agreement hanging in the balance. Trump's trade chief rejected Canadian proposals for unblocking NAFTA modernization talks on Monday but pledged to seek "breakthroughs" by late February, easing concerns that Washington would soon withdraw from the trilateral pact.
Fed Chair Janet Yellen was expected to keep the central bank on course for more interest rate rises at her final meeting in charge. The rate decision is due on Wednesday. World stocks were stuck in their biggest two-day dive in almost six months and the price of oil, one of Canada's major exports, also fell, as nerves about rising global borrowing costs cooled financial markets' euphoric start to the year.
U.S. crude prices were down nearly 1 percent at
$64.93 a barrel. Canadian government bond prices were mixed across a steeper yield curve in sympathy with U.S. Treasuries. The two-year was flat to yield 1.825 percent and the benchmark
10-year declined 12 Canadian cents to yield 2.296
percent. On Monday, the 10-year yield touched its highest intraday since September 2014 at 2.314 percent. Canadian gross domestic product data for November is due on Wednesday. The economy is forecast to have grown by 0.4 percent, a Reuters poll shows, regaining momentum after pausing in October.
(Reporting by Fergal Smith; Editing by Nick Zieminski)