By Alastair Sharp TORONTO, Aug 7 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Wednesday as signs the U.S. Federal Reserve could trim its stimulus weighed on commodities and their related currencies. The loonie, as Canada's currency is known colloquially, was also being pressured ahead of the release of Chinese trade data overnight, which will update demand in the major commodity purchaser. "For Canada, we have some FX risk overnight with the release of Chinese trade data, so that could be weighing on it (the Canadian dollar)," said Camilla Sutton, chief currency strategist at Scotiabank. The Canadian currency pushed as high as C$1.0445 against the greenback in early trade, the first time it has been above C$1.04 since mid-July, after two U.S. central bank officials suggested the Fed may reduce the pace of bond purchases as early as next month. "The markets that have benefited from the largesse of the Fed over the last few years are probably going to see some headwinds at least if they start to reel back, with additional worries about China and slower growth in Asia not helping out," said Shaun Osborne, chief currency strategist at TD Securities. It ended the North American session trading at C$1.0423 to the greenback, or 95.94 U.S. cents, compared with C$1.0376, or 96.38 U.S. cents, at Tuesday's close. Brent oil slipped below $108, and copper and other industrial metals fell on a mix of worries about slowing China growth, easing of supplies, and the Fed signals. Canada's currency is affected by moves in global commodity markets, given its economy is heavily dependent on exports of natural resources. Prices for Canadian government debt were higher across the curve, with the two-year bond up 1.5 Canadian cents to yield 1.146 percent, and the benchmark 10-year bond rising 13 Canadian cents to yield 2.504 percent.