* Canadian dollar rises 0.1% against the greenback
* Price of U.S. oil gains 0.1%
* Canada's auto sales fall 2.5% year-over-year in March
* Canadian bond prices decline across steeper yield curve
TORONTO, April 3 (Reuters) - The Canadian dollar edged higher against its U.S. counterpart on Wednesday as upbeat Chinese data calmed fears of a global economic slowdown and as hopes rose of a trade deal between China and the United States.
World stocks rallied to six-month highs, helped by signs of progress in U.S.-China trade talks and reassuring economic data. in China's services sector picked up to a 14-month high in March, a private business survey showed, adding to signs that government stimulus policies are gradually kicking in. exports many commodities, including oil, so its economy could be helped by an improved outlook for the global economy.
The price of oil held near its highest this year, supported by OPEC-led supply cuts and U.S. sanctions. U.S. crude oil futures CLc1 were up 0.1% at $62.64 a barrel. 9:15 a.m. (1315 GMT), the Canadian dollar CAD=D4 was trading 0.1% higher at 1.3325 to the greenback, or 75.05 U.S. cents.
The currency's strongest level of the session was 1.3297, matching Monday's 11-day high, while its weakest was 1.3353.
The loonie has strengthened 2.4 percent since the start of the year but has given up some ground since February as data showed weakening of the domestic economy.
Canada's auto sales fell 2.5 percent in March from a year earlier, marking 13 straight months of declines, according to industry data released on Tuesday. employment report for March is due on Friday.
Canadian government bond prices were lower across a steeper yield curve in sympathy with U.S. Treasuries. The two-year CA2YT=RR fell 4 Canadian cents to yield 1.583% and the 10-year CA10YT=RR declined 33 Canadian cents to yield 1.705%.
Canada's 10-year yield rose 4 basis points further above the yield on the 3-month T-bill to reach a spread of 4.2 basis points, which could temper the recession concerns of some investors. curve inverted in March for the first time since 2007.