* Canadian dollar edges up to 97.37 U.S. cents * C$ touches highest level in more than 7 weeks * Bonds mixed By Ka Yan Ng TORONTO, March 9 (Reuters) - The Canadian dollar rallied toturn slightly higher versus the U.S. dollar on Tuesdayafternoon as the price of oil pared earlier losses and NorthAmerican equity markets offered a mixed performance. There was some cautious movement on stock markets, often abarometer of risk appetite for the Canadian dollar. [.TO][.DJI] [.N] A steady drumbeat of corporate news lifted specific stockson the anniversary of U.S. markets hitting 12-year closinglows, while in Toronto, the main index was down moderately onweakness in resource issues. Still, the commodity-linked currency bloc of the Canadian,Australian and New Zealand dollars was a strong performer onTuesday, even as prices of resources took on a weaker tone. Theprice of oil, a key Canadian export, was trading around $81 abarrel. CLc1 [O/R] "The currency landscape is reflecting a mixed bag today.Typically the market trades based on risk elements but riskitself is uneven," said Jack Spitz, managing director offoreign exchange at National Bank Financial. "And yet, despite that, commodity currencies are leadingthe price valuation today." The Canadian currency is on track for an eighth straighthigher close. It has risen sharply on evidence that thedomestic economy is recovering and on a slightly more hawkishtone from the Bank of Canada. It has largely traded in a C$1.0250-C$1.0350 rangerecently, though it briefly advanced to its highest level inmore than seven week at C$1.0235 to the U.S. dollar, or 97.70U.S. cents, early Tuesday afternoon. At 3:15 p.m. (2015 GMT), the currency was at C$1.0270 tothe U.S. dollar, or 97.37 U.S. cents, up from C$1.0276 to theU.S. dollar, or 97.31 U.S. cents, at Monday"s close. BONDS MIXED Bond prices were mixed, following a U.S. three-year noteauction, with the short-end on the rise while the longer-datedissues remained in negative territory. The two-year Canadian government bond CA2YT=RR was up 4Canadian cents at C$99.96 to yield 1.520 percent, while the10-year bond CA10YT=RR dipped 2 Canadian cents to C$101.83 toyield 3.516 percent. (Reporting by Ka Yan Ng; editing by Rob Wilson)
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