The Canadian dollar strengthened to a 10-day high against its US counterpart on Monday as expectation that global central banks are likely to provide more stimulus to offset the impact of Brexit supported commodity-linked currencies.
Gains for the loonie came amid light trading volumes for European markets because of the July 4 public holiday in the United States. Canada's stock and bond markets were closed on Friday for Canada Day.
The Australian dollar recovered from a wobbly start caused by political uncertainty as expectations that the US Federal Reserve is in no hurry to raise rates provided support.
Australia, like Canada, is a commodity producer.
Oil prices were little changed after Saudi Energy Minister Khaled Al-Faleh said that the market was heading towards balance, offsetting signs of slowing demand in Asia. US crude prices were unchanged at $48.99 a barrel.
At 9:55 am EDT (1355 GMT), the Canadian dollar was trading at C$1.2857 to the greenback, or 77.78 US cents, stronger than Friday's close of C$1.2917, or 77.42 US cents.
The currency's weakest level of the session was C$1.2923, while it touched its strongest since June 24 at C$1.2851.
Speculators increased bullish bets on the loonie for the first time in four weeks, Commodity Futures Trading Commission data showed on Friday. Net long Canadian dollar positions rose to 7,949 contracts in the week ended June 28 from 2,595 contracts in prior week.
Canadian government bond prices were higher across the maturity curve as the post-Brexit recovery across European stock markets stalled.
The two-year price rose 0.5 Canadian cent to yield 0.515 percent and the benchmark 10-year firmed 9 Canadian cents to yield 1.05 percent.
The 10-year yield touched its lowest since February 12 at 1.042 percent.
The Bank of Canada will release its business outlook survey at 10:30 am EDT (1430 GMT), a summary of interviews conducted by the central bank's regional offices with the senior management of about 100 firms.