* Canadian dollar rises 0.5 percent vs greenback
* Price of U.S. oil rises 2.3 percent
* Canadian wholesale trade falls 0.5 percent in September
* Canadian bond prices dip across a flatter yield curve
By Fergal Smith
TORONTO, Nov 21 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Wednesday, as a rebound in oil prices and stocks offset domestic data showing a surprise decline in wholesale trade for September.
At 2:31 p.m. ET (1931 GMT), the Canadian dollar CAD=D4 was trading 0.5 percent higher at 1.3247 to the greenback, or 75.49 U.S. cents.
The currency, which touched its weakest level in nearly five months on Tuesday at 1.3318, traded in a range of 1.3237 to 1.3317.
"The Canadian dollar is all about global risk sentiment," said Brad Schruder, director of corporate sales and structuring at BMO Capital Markets. "If oil and equities can find some type of base here, then the Canadian dollar has potential to rally over two-and-a-half cents."
The price of oil, one of Canada's major exports, bounced from the lowest levels in months after U.S. government data showed strong demand for refined fuel, but concerns remained over rising global crude supply. crude oil futures CLc1 settled 2.3 percent higher at $54.63 a barrel, while U.S. stock futures recouped some losses after a brutal two-day sell-off pushed the S&P 500 and the Dow Jones Industrial Average into the red for the year. addition to being a major commodities exporter, Canada runs a current account deficit. Its economy could be hurt if the global flow of trade or capital slows.
Data from Statistics Canada showed that wholesale trade decreased by 0.5 percent in September from August, as weaker sales in the machinery, equipment and supplies subsector led the decline. Analysts surveyed by Reuters had forecast a 0.3 percent increase.
Canadian Prime Minister Justin Trudeau's government will release a regular fall budget update at about 4 p.m. (2100 GMT). The update comes less than a year before the next national election.
Canada's inflation report for October and retail sales data for September are due on Friday.
Canadian government bond prices were lower across a flatter yield curve in sympathy with U.S. Treasuries. The two-year CA2YT=RR fell 3.2 Canadian cents to yield 2.233 percent and the benchmark 10-year CA10YT=RR declined 9 Canadian cents to yield 2.361 percent.
On Tuesday, the 10-year yield touched its lowest in more than two months at 2.332 percent.