* Canadian dollar edges higher to 94.32 U.S. cents

 * Bonds prices drift lower

The Canadian dollar climbed against the U.S. currency on Wednesday, boosted by firmer commodity prices and as investor risk appetite returned after recent losses.

 The price of oil, a key Canadian export that often influences movements in the currency, rose toward $74 a barrel in part on a weaker greenback, while gold was also higher.

 The unit was also helped by indications U.S. equity markets would gain footing after two sessions of losses.

 Generally the view here is Canada is oversold. The U.S. dollar bounce did not treat Canada kindly, said Firas Askari, head of foreign exchange trading at BMO Capital Markets.

 At 8:27 a.m. (1327 GMT), the Canadian dollar was at C$1.0602 to the U.S. dollar, or 94.32 U.S. cents, up from Tuesday's finish at C$1.0639 to the U.S. dollar, or 93.99 U.S. cents.

 The Canadian currency's rise followed a weaker session on Tuesday when global debt concerns rattled markets. Appetite for risk waned after credit agency Fitch cut Greece's credit rating and as worries about Dubai's debt woes resurfaced, keeping the U.S. dollar buoyant as a safe haven. 

 As well, the unit fell even after the Bank of Canada reiterated on Tuesday that it would leave its benchmark interest rate unchanged until mid 2010, but offered the market a slightly more hawkish tone in its accompanying statement, said Askari.

 What people were expecting was more recognition of the recent economic strength that we've seen out of Canada. The bank is being somewhat wary about pointing to it, he said. I think they were as hawkish as they could've gotten away with.

 Canadian bond prices edged lower after rising the previous day on flight-to-safety bids, while also tracking U.S. Treasuries, which sagged on Wednesday ahead of a 10-year note auction.