* Canadian dollar at C$1.2890, or 77.58 U.S. cents
* Loonie on track to break six-session losing streak
* Oil prices rise 0.6 percent
* Bond prices lower across yield curve
TORONTO, March 6 (Reuters) - The Canadian dollars trengthened against its U.S. counterpart on Tuesday, rebounding from an eight-month low hit the day before, as trade war fears eased and a historic agreement between North Korea and SouthKorea boosted risk appetite.
South Korea said it would hold a summit with North Korea for the first time in more than a decade, which investors took as a cue to sell the U.S. dollar .DXY and buy commodity-linked currencies, which tend to outperform as the outlook for the global economy improves. price of oil CLc1, one of Canada's major exports, rose0.6 percent and global stocks climbed, helped also by increasing resistance to U.S. President Donald Trump's proposed tariffs on steel and aluminum. O/R number of countries including Canada, which is the largest supplier of both metals to the United States, have threatened to retaliate to the tariffs.
At 9:16 a.m. EST (1416 GMT), the Canadian dollar CAD=D4 was trading 0.6 percent higher at C$1.2890 to the greenback, or 77.58 U.S. cents, its first advance since Feb. 23.
The currency traded in a range of C$1.2865 to C$1.2995. On Monday, it touched its weakest since July 5 at C$1.3002.
Gains for the loonie came after Mexican and U.S. officialspushed on Monday to speed renegotiation of the North AmericanFree Trade Agreement, with the United States floating the ideaof reaching an agreement "in principle" in coming weeks to avoidpolitical headwinds later this year. sends 75 percent of its exports to the United States.The Bank of Canada has said that uncertainty about the future ofNAFTA is weighing increasingly on the outlook for Canada'seconomy.
The central bank has raised interest rates three times sinceJuly but is expected to leave its benchmark interest rate onhold at 1.25 percent in a policy announcement on Wednesday.
Domestic trade data for January is also due on Wednesday andthe February employment report is due on Friday
Canadian government bond prices were lower across the yieldcurve, with the two-year CA2YT=RR down 2 Canadian cents toyield 1.759 percent and the 10-year CA10YT=RR falling 13Canadian cents to yield 2.21 percent.
On Monday, the 10-year yield touched its lowest intraday innearly two months 2.145 percent.