The loonie also was spurred higher by healthy economic data released by Germany, the top economic power in the euro zone. Thursday's advance for the Canadian currency achieves its first climb in three days against the greenback.
"It's generally a positive data tone, especially out of China, where we were concerned about maybe a little bit of a harder landing," chief macro strategist David Tulk with Toronto-Dominion Bank's TD Securities unit in Toronto told Bloomberg on Thursday. "The sense that the rest of the world is doing OK does help support Canada, given the fact that we have become increasingly reliant on net exports to drive the next stage of the recovery."
The loonie surged as much as 0.6 percent against the U.S. dollar after diving to its lowest value since July 11 on Wednesday.
Exports from China exceeded expectations in July, marking an increase of 5.1 percent on the year, according to The Wall Street Journal. Imports to Asia's largest economy rose 11 percent.
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