CANADA FX DEBT-Canadian dollar rebounds as investors cheer Carney cabinet pick

By Fergal Smith

TORONTO, May 13 (Reuters) - The Canadian dollar recovered from a one-month low against its U.S. counterpart on Tuesday as the greenback weakened broadly and investors applauded some of Canadian Prime Minister Mark Carney's cabinet choices.

The loonie CAD= was trading 0.2% higher at 1.3950 per U.S. dollar, or 71.68 U.S. cents, after touching its weakest intraday level since April 10 at 1.4016.

Carney unveiled a new cabinet that he said would help define a new relationship with Washington. Former Goldman Sachs banker Tim Hodgson was named natural resources minister.

"Mark Carney campaigned on building and his choice for natural resources shows that he is serious about building resources in Canada," said Adam Button, chief currency analyst at ForexLive.

"I think it's the most important cabinet pick today. ... It's a great signal for the loonie."

Carney, whose Liberal Party won last month's general election, has said that Canada must spend billions to start shifting the economy's focus away from the United States as well as end barriers to internal trade and cut public spending.

Canada is a major producer of natural resources, including oil. Oil CLc1 settled 2.8% higher at $63.67 a barrel, continuing to benefit from easing U.S.-China trade tensions.

"The market is feeling much better about global growth in light of the climb down in the U.S.-China trade war," Button said.

The U.S. dollar .DXY gave back some of Monday's rally against a basket of major currencies after data showed U.S. consumer prices increased less than expected last month.

Canadian bond yields rose across a steeper curve, tracking moves in U.S. Treasuries. The 10-year CA10YT=RR was up 2.2 basis points at 3.231%.