* Canadian dollar at C$1.3018, or 76.82 U.S. cents
* Price of U.S. oil rises 0.4 percent
* Bond prices mixed across the yield curve
By Fergal Smith
TORONTO, June 12 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Tuesday as potential buyers of the currency held off in the hope of seeing cheaper levels after a Federal Reserve interest rate decision on Wednesday.
At 4 p.m. EDT (2000 GMT), the Canadian dollar CAD=D4 was trading 0.3 percent lower at C$1.3018 to the greenback, or 76.82 U.S. cents. The currency traded in a range of C$1.2977 to C$1.3030.
Last week, the loonie touched its weakest in 2-1/2 months at C$1.3068.
"Those who would be buyers of CAD seem like they have shifted their entry points higher, at a minimum just sitting back and waiting for the Fed," said Greg Anderson, global head of foreign exchange strategy at BMO Capital Markets in New York. "So the market is just feeling its way higher."
The currency has been pressured this week by a trade feud between U.S. President Donald Trump and Canadian Prime Minister Justin Trudeau. days after blowing up a G7 summit Trudeau had hosted, Trump took another dig at him, saying the United States had a big trade deficit with Canada and that "a little balance" was needed.
An increase in trading volume after the Fed decision could allow investors who were looking for a weaker Canadian dollar after the G7 to take a position, Anderson said.
The U.S. president's comments come amid slow-moving talks between Canada, the United States and Mexico to modernize the North American Free Trade Agreement. Canada sends about 75 percent of its exports to the United States and its economy could be hurt if NAFTA were scrapped.
U.S. crude oil futures CLc1 settled 0.4 percent higher at $66.36 a barrel. Oil is one of Canada's major exports.
Canadian government bond prices were mixed across the yield curve, outperforming U.S. Treasuries after data for May showed the biggest advance in U.S. consumer prices in more than six years. 10-year CA10YT=RR rose 7 Canadian cents to yield 2.298 percent.