* C$ rises to C$1.0561 to the U.S. dollar
* Commodities and risk appetite drive Canadian dollar
* Bond prices edge higher across curve
TORONTO, Oct 8 (Reuters) - Canada's dollar rose against the U.S. currency early on Thursday on the backdrop of higher commodity prices and growing expectations that domestic jobs data due later this week could be better than expected.
Helping drive Canada's commodity-linked currency higher was a rise in gold prices to a record high for the third successive session and a rally in oil prices above $70 a barrel on signs of global economic recovery. [GOL/] [O/R]
The upbeat tone, which created demand for riskier assets, was aided by Australian employment data that surged past expectations and added to the case for more interest rate rises this year. [ID:nSYD431125]
Earlier this week the Reserve Bank of Australia raised its interest rate, becoming the first central bank in the Group of 20 nations to tighten policy as the financial crisis abates. [ID:nSYD520296]
"The rate hike and then the strong job numbers overnight just gave people a reason to stay long in risky assets and more than enough reason to sell the U.S. dollar again." said David Watt, senior currency strategist at RBC Capital Markets in Toronto.
"I don't necessarily know to what extent Australia is the litmus test for the rest of the global economy, but that's the role it's taken on right now,"
At 7:30 a.m. (1130 GMT), the Canadian unit was at C$1.0561 to the U.S. dollar, or 94.69 U.S. cents, up from C$1.0624 to the U.S. dollar, or 94.13 U.S. cents, at Wednesday's close.
Watt said the recent upward swing in sentiment has some people thinking "maybe, just maybe" Canada could have a positive surprise when jobs data for September is released early on Friday.
The report is expected to show the domestic economy created 5,000 jobs in September while the unemployment rate rose to 8.7 percent.
Domestic bond prices were pinned slightly lower across the curve alongside the bigger U.S. Treasury market. (Editing by Padraic Cassidy)
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