* C$ rises to 94.14 U.S. cents
* Bonds slip as stocks gain
* U.S. Federal Reserve, Bank of Canada in focus
TORONTO, Nov 4 (Reuters) - The Canadian dollar hit its highest level in more than week against the U.S. dollar on Wednesday morning, building on gains made on the back of rising oil and record gold prices ahead of a key interest rate decision by the U.S. Federal Reserve.
The gains follow two straight higher closes this week, as gold prices cruised to a record high above $1,095 an ounce and as climbing oil prices also lifted the commodity-linked currency. [GOL/] [O/R]
The Canadian dollar strengthened as high as C$1.0597 to the U.S. dollar, or 94.37 U.S. cents, its highest since Oct. 26.
At 8:10 a.m. (1310 GMT), it was at C$1.0622 to the U.S. dollar, or 94.14 U.S. cents, up from C$1.0682 to the U.S. dollar, or 93.62 U.S. cents, at Tuesday's close.
Global stock market advances also offered support, as investors were encouraged by euro zone service sector growth [PMI], and ahead of this afternoon's interest rate decision by the U.S. Federal Reserve.
A little-changed statement would likely put additional pressure on the U.S. dollar, and fuel further gains in the Canadian dollar.
But before the Fed releases its decision at 2:15 p.m. (1915 GMT), market watchers may monitor Bank of Canada Deputy Governor John Murray, who will be speaking in Prince George, British Columbia, at 11:05 a.m. (1605 GMT), on "Central Banking Revealed: How We Promote Canada's Economic and Financial Well-Being."
Currency watchers may look to see if the Bank of Canada will reiterate that it has a suite of tools at their disposal to temper the currency's strength.
"I wouldn't be surprised to hear the Bank of Canada speak up as it did last week if we're able to break down below C$1.05. We'll be watching very closely for that," said C.J. Gavsie, managing director of foreign exchange sales at BMO Capital Markets.
"Eventually the market is going to start challenging the Bank of Canada on its comments as far as what they'll use as tools to step in to defend the strength in the Canadian dollar. So far all they're doing is intervening by their comments."
The currency's upward march was stalled mid-month in October after it had neared a 15-month high, which Gavsie attributed partly to the end of the fiscal year for Canadian banks. That had taken risk off the table for several currencies, including the Canadian dollar.
But it now seems the market is prepared again to take the Canadian currency higher, perhaps to parity, he said.
One of the next key events likely to offer direction for the Canadian dollar is Canadian employment data on Friday, which is expected to show the economy added 10,000 jobs in October, although overall influence may depend on the U.S. nonfarm payrolls data due on the same morning.
BOND PRICES SLIP
Canadian bond prices were moderately lower across the curve, spurred by a renewal in risk appetite as stock markets gained, ahead of Wednesday's statement from the U.S. Federal Reserve on monetary policy.
Market players will closely examine the statement to see if the Fed alters its wording and lays the foundation for tighter monetary policy at some point in the future. Investors will also look for hints of when it might deploy an exit strategy for its massive stimulus programs.
The two-year bondslipped 6 Canadian cents to C$99.64 to yield 1.427 percent, while the 10-year bond fell 34 Canadian cents to C$102.21 to yield 3.476 percent. (Reporting by Ka Yan Ng; Editing by Theodore d'Afflisio)
Our Standards: The Thomson Reuters Trust Principles.