US job growth surged in January, pointing to underlying strength in the economy despite a darkening outlook that has left the Federal Reserve cautious about further interest rate hikes this year.

The price of oil, one of Canada's major exports, was supported by producer cuts and US sanctions on Venezuelan exports that have helped to tighten supply. US crude oil futures  were up 0.50 percent at $54.06 a barrel.

At 9:15 a.m. (1415 GMT), the Canadian dollar was trading 0.1 percent higher at 1.3111 to the greenback, or 76.27 US cents. The currency, which climbed 3.9 percent in January, touched its strongest level intraday since Nov. 8 at 1.3109.

Gains for the loonie came after US President Donald Trump said on Thursday he will meet with Chinese President Xi Jinping soon to try to seal a comprehensive trade deal.

Data on Friday showed shrinking factory activity in China could increase the urgency for a deal.

Canada is running a current account deficit as well as being a major commodities producer, so its economy could benefit from a pickup in the global flow of trade.

Canadian government bond prices were lower across the yield curve in sympathy with US Treasuries. The two-year fell 4 Canadian cents to yield 1.795 percent and the 10-year declined 26 Canadian cents to yield 1.909 percent.

On Thursday, the 10-year yield touched its lowest intraday in nearly four weeks at 1.865 percent.