Wires

CANADA FX DEBT-Canadian dollar steadies near 2-month low as China adds liquidity

April.

liquidity@

* Canadian dollar rises 0.1% against the greenback

* Loonie trades in a range of 1.3268 to 1.3301

* Price of U.S. oil increases 2.6%

* Canadian bond yields rise across a steeper yield curve

TORONTO, Feb 4 (Reuters) - The Canadian dollar edged higher against the greenback on Tuesday as intervention by China's central bank tempered concern about the economic impact of the coronavirus outbreak, with the loonie steadying after it hit a two-month low the day before.

Stocks rallied globally after the People's Bank of

China injected liquidity into money markets, while the price of oil, one of Canada's major exports, rallied on hopes for new output curbs from OPEC and its allies to offset any potential drop in demand triggered by the virus. U.S. crude oil futures were up 2.6% at $51.41 a barrel.

At 8:52 a.m. (1352 GMT), the Canadian dollar was

trading 0.1% higher at 1.3279 to the greenback, or 75.31 U.S. cents. The currency, which hit a two-month low on Monday at 1.3302, traded in a range of 1.3268 to 1.3301. Trade confidence among Canadian exporters fell to its lowest level in nearly a decade, Canada's export credit agency said, as businesses wrestle with protectionist policies and fret about the global economy. Canadian trade data for December is due on Wednesday and the January jobs report is awaited on Friday, both of which could guide expectations for the Bank of Canada interest rate outlook. Last month, the Canadian central bank left the door open to an interest rate cut should a recent slowdown in domestic growth persist. Money markets see about a 60% chance that it will ease Canadian government bond yields rose across a steeper yield

curve, with the 10-year yield rising 5.2 basis

points to 1.310%. On Monday, it hit its lowest intraday level in nearly four months at 1.252%.

(Reporting by Fergal Smith; Editing by Steve Orlofsky)