* Canadian dollar at C$1.3444, or 74.38 U.S. cents
* Bond prices lower across the yield curve
TORONTO, Jan 3 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Tuesday as broader gains for the greenback offset higher oil prices.
Oil, one of Canada's major exports, reached 18-month highs, buoyed by hopes that a deal between OPEC and other big oil exporters to cut production will drain a global supply glut. O/R
U.S. crude CLc1 prices were up 2.42 percent at $55.02 a barrel.
The U.S. dollar index .DXY pushed to a fresh 14-year high after stronger-then-expected U.S. manufacturing data. FRX/
Gains for the greenback came as upbeat Chinese data helped boost global stock markets. 10:05 a.m. ET (1505 GMT), the Canadian dollar CAD=D4 was trading at C$1.3444 to the greenback, or 74.38 U.S. cents, slightly weaker than Monday's close of C$1.3438, or 74.42 U.S. cents, according to Reuters data.
The currency's strongest level of the session was C$1.3405, while its weakest was C$1.3461.
The Bank of Canada's official close on Friday, the last trading day of 2016, was C$1.3427, or 74.48 U.S. cents.
The loonie rose 3 percent in 2016, its first annual gain since 2012.
Speculators slashed bearish bets on the Canadian dollar for the second straight week, according to Commodity Futures Trading Commission data and Reuters calculations. Net short Canadian dollar positions fell to 1,598 contracts as of Dec. 27 from 11,754 a week earlier. government bond prices were lower across the yield curve, with the two-year CA2YT=RR price down 5.5 Canadian cents to yield 0.777 percent and the benchmark 10-year CA10YT=RR falling 50 Canadian cents to yield 1.772 percent.
In mid-December, the 10-year yield touched its highest in 17 months at 1.859 percent.
Canada's trade report for November and employment report for December are due on Friday. ECONCA