Canadian inflation data for July is due on Wednesday and retail sales for June will come out on Friday. Reuters polls predicted a 1.7pc annual rate of inflation and a 0.1pc decrease for June retail sales.

"Key points will be tomorrow's CPI and then retail sales on Friday ... so I think people are just more of a wait-and-see on the data," said Don Mikolich, executive director of foreign exchange sales at CIBC Capital Markets

The Canadian dollar was trading 0.1pc higher at 1.3311 to the greenback, or 75.13 US cents, at 3:44 p.m. (1944 GMT). Earlier in the day, the currency touched it weakest intraday level since June at 1.3346.

The rise for the loonie came as the price of oil, one of Canada's major exports, steadied on optimism that US-China trade tensions will ease and hopes that major economies will take stimulus measures to ward off a possible economic slowdown.

Oil prices had earlier fallen after the Organization of Petroleum Exporting Countries cut its forecast for global oil demand growth in 2020.

US crude oil futures settled 0.2pc higher at $56.34 a barrel.

Canadian factory sales decreased by 1.2pc in June from May on lower petroleum and coal product sales, domestic data showed, although the decline was less than the 1.7pc forecast.

Canadian government bond prices were higher across the yield curve, with the two-year up 3 Canadian cents to yield 1.343pc and the 10-year rising 22 Canadian cents to yield 1.165pc.