* Canadian dollar at C$1.2604, or 79.34 U.S. cents
* Bond prices lower across the yield curve
* 10-year yield near two-month high at 2.316 percent
TORONTO, April 19 (Reuters) - The Canadian dollar edged higher against its U.S. counterpart on Thursday after hitting a one-week low the day before, as oil prices climbed and data showed a jump in domestic employment.
The price of oil, one of Canada's major exports, rose to its highest since late 2014 as U.S. crude inventories declined and after sources told Reuters that top exporter Saudi Arabia aims to push prices even higher. crude CLc1 prices were up 0.7 percent at $68.97 a barrel.
Canada added 42,800 jobs in March, led by hiring in the construction industry, according to a report from ADP. 9:24 a.m. EDT (1324 GMT), the Canadian dollar CAD=D4 was trading 0.2 percent higher at C$1.2604 to the greenback, or 79.34 U.S. cents. The currency traded in a range of C$1.2587 to C$1.2645.
The loonie hit on Wednesday its lowest since April 10 at C$1.2660 after the Bank of Canada left interest rates on hold and said it did not know when or how aggressive it would need to be to keep inflation in check. Morgan Inc KMI.N said on Wednesday that recent events confirmed an investment in the Trans Mountain pipeline expansion may be "untenable" and said Ottawa's pledge of financial support does not resolve political risk related to British Columbia's opposition. Trans Mountain expansion is considered crucial for Alberta's oil industry which has been beset by transportation bottlenecks. The bottlenecks contributed to a discount for Canadian crude to U.S. oil prices.
Canadian government bond prices were lower across the yield curve in sympathy with U.S. Treasuries. The two-year CA2YT=RR fell 2 Canadian cents to yield 1.902 percent and the 10-year CA10YT=RR declined 22 Canadian cents to yield 2.316 percent.
The 10-year yield reached its highest intraday since Feb. 22 at 2.316 percent.
Canadian inflation data for March and the February retail sales report are due on Friday.