A history of the song and who played it can be found here:
My canary has circles under his eyes

The Captain Matchbox Whoopee Band signed to Image Records in 1972 and issued their debut single "My Canary Has Circles Under His Eyes", which was a Top 40 hit in Melbourne in November. During the year a brief snippet of their TF Much Ballroom act (performing "Who Walks Out When I Walk In") was captured (in colour) by film maker Peter Weir in his short documentary Three Directions In Australian Pop Music, which also featured performances by Spectrum and Wendy Saddington & Teardrop. Matchbox also featured in an episode of GTK, where they were interviewed by reporter Jeune Pritchard and gave a live-in-the-studio performance of "Mobile Line".

In June-July of 1972 Captain Matchbox supported folk legend Phil Ochs on his first tour of Australia. Their next single "I Can't Dance (Got Ants in My Pants)" / "Jungle Dance" was released in April 1973 and their debut album Smoke Dreams was released in June. The album was comprised entirely of 1930s and 1940s jazz, blues and jug-band standards. The lineup for these recordings was Mic (vocals, washboard, ukelele), Jim (harmonica, kazoo, vocals), Dave Hubbard (guitar), Peter Inglis (guitar, vocals), Peter Scott (tea chest bass), Mick Fleming (banjo, mandolin, guitar, vocals) and Jim Niven (piano, pedal organ). Here's a detailed history and discography of the band

Btw, the Captain Matchbox Whoopee Band reformed in 2010 for the Woodford Folk Festival, with shows at Bluesfest and Sydney (Cat & Fiddle - standing room only) and Melbourne. The lineup for the reuinion included: Mic Conway, Jim Conway, Jeremy Cook, Don Hopkins, Phil Donnison, Cazzbo Johns, Jess Green and George Washingmachine.