* Canadian dollar trades near flat against the greenback
* Canadian productivity rises 9.8% in the second quarter
* Price of U.S. oil increases 0.5%
* Canadian bond yields little changed across the curve
By Fergal Smith
TORONTO, Sept 2 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Wednesday as higher oil prices offset broader gains for the greenback, with the loonie steadying after it pulled back from a near eight-month high the day before.
The loonie CAD= was trading nearly unchanged at 1.3065 to the greenback, or 76.54 U.S. cents. The currency, which on Tuesday posted its strongest intraday level since Jan. 8 at 1.2990, traded in a range of 1.3053 to 1.3084.
The price of oil, one of Canada's major exports, was supported by a report that U.S. crude inventories fell and as surveys showing stronger manufacturing raised hopes of a recovery from the coronavirus pandemic. crude CLc1 prices were up 0.5% at $42.98 a barrel, while the U.S. dollar .DXY extended its rebound from a two-year low against a basket of major currencies. the CAD to generally track the broader tone of the USD for now ... that might mean the CAD can regain a bit more ground on the crosses," strategists at Scotiabank, including Shaun Osborne, said in a note.
Against the euro EUR= , the Canadian dollar advanced about 0.4%, while it was up about 0.5% against the Australian dollar AUD= .
Canadian labor productivity rose at a record pace in the second quarter, climbing 9.8%, as hours worked fell at a much faster pace than business output, Statistics Canada said. jobs report for August is due on Friday, which could offer clues on the strength of economic recovery from the coronavirus crisis. Data on Tuesday showed that Canadian manufacturing activity accelerated in August to its fastest pace in two years.
Canadian government bond yields were little changed across the curve on Wednesday, with the 10-year CA10YT=RR flat at 0.577%.