* C$ hits high at C$0.9887 to the $US, or $1.0114 * C$ hits record high against euro * Bond prices mostly lower By Solarina Ho TORONTO, Aug 15 (Reuters) - The Canadian dollar hit its highest level against its U.S. counterpart in more than three months on Wednesday after U.S. economic data supported the possibility of further stimulus by the Federal Reserve. U.S. consumer prices were unchanged in July for a second straight month, giving the Fed room to deal with uncomfortably high unemployment through monetary easing. The Canadian currency also advanced against many of its peers and rose to a record high against the euro, which weakened against the U.S. dollar. "We are seeing continued outperformance of North American currencies," said Audrey Childe-Freeman, head of foreign exchange strategy for BMO Capital Markets in London. The Canadian dollar hit C$0.9887 versus the U.S. dollar, or $1.0114, up from Tuesday's close at C$0.9919, or $1.0082. The currency had hit C$0.9862, or $1.014 back on May 4. "I think people ... are surprised by the consistent strength of the Canadian dollar," said David Bradley, director of foreign exchange trading at Scotiabank, who also noted an interest to sell USD/CAD around the London fix. A recent slew of supportive economic data, global stimulus hopes and comments by the Bank of Canada have combined to power the Canadian dollar toward May highs. "It seems like Canada's going to continue to do better," said Bradley. The Canadian dollar was also notably stronger versus other risk currencies, touching a one-month high against the Australian dollar. The Australian dollar was hurt after Moody's ratings agency said it might eventually downgrade the credit ratings of some Australian states. "I like to play the bullish Canadian dollar view on the crosses and in particular against the Aussie dollar," said Childe-Freeman. Canadian bond prices were mostly lower. The two-year bond slid 11 Canadian cents to yield 1.243 percent, and the benchmark 10-year bond fell 65 Canadian cents to yield 1.929 percent.