(Adds strategist quotes and details throughout; updates prices) * Canadian dollar weakens 0.3% against the greenback * Canada posts a trade surplus of C$594 million in April * Price of U.S. oil settles 1.2% higher * Canadian 10-year yield hits its lowest in nearly two months By Fergal Smith TORONTO, June 8 (Reuters) - The Canadian dollar fell against its broadly stronger U.S. counterpart on Tuesday, but stayed within its recent trading range as data showed a surprise Canadian trade surplus and investors awaited a Bank of Canada interest rate decision. The Canadian dollar was trading 0.3% lower at 1.2115 to the greenback, or 82.54 U.S. cents, having pulled back from a six-year high last week at 1.2007. It"s weakest level since mid-May was 1.2144. "The CAD is generally trading in tandem with its G10 peers today, in what appears to be an environment of modest, broad-based USD strength," said Eric Theoret, global macro strategist at Manulife Investment Management. "The currency has been range bound for over a month now, trading within a remarkably narrow range following its solid run into the start of May," Theoret added. The loonie has been supported in recent months by higher commodity prices and a more hawkish stance from the Bank of Canada. The central bank is widely expected to leave its key interest rate on hold at 0.25% on Wednesday and through the rest of 2021. But it could cut the pace of its bond purchases once gain as soon as next quarter, a Reuters poll showed. Canada posted a trade surplus of C$594 million in April, as imports fell at a much faster rate than exports, Statistics Canada said. Analysts had predicted a deficit of C$700 million. The U.S. dollar rose against a basket of major currencies, while the price of oil , one of Canada"s major exports, settled 1.2% higher at $70.05 a barrel. Canadian government bond yields were lower across a flatter curve, tracking the move in U.S. Treasuries. The 10-year fell to its lowest level since April 15 at 1.439% before recovering to 1.449%, down 2.9 basis points on the day. (Reporting by Fergal Smith Editing by Bernadette Baum and Alistair Bell) Our Standards: The Thomson Reuters Trust Principles.