Canadian manufacturing sales increased by 0.8pc in August from July on higher motor vehicle sales, as well as fabricated metal products, Statistics Canada said. Analysts had forecast a 0.6pc increase.
Separate data from payroll services provider ADP showed that Canada added 28,200 jobs in September, building on a blockbuster increase of 109,900 in an upwardly revised reading for the previous month.
The encouraging data could support expectations for the Bank of Canada to leave its benchmark interest rate unchanged at 1.75pc when the central bank announces its next rate decision on Oct. 30.
Global stocks rose and the U.S. dollar lost ground after Britain struck a preliminary last-minute deal with the European Union helping to ease some geopolitical jitters.
Canada runs a current account deficit and is a major exporter of commodities, including oil, so its economy could benefit from a pick-up in the global flow of capital or trade.
U.S. crude oil futures were down 0.5pc at $53.09 a barrel as industry data showed a larger-than-expected build-up in U.S. inventories.
At 9:09 a.m. (1309 GMT), the Canadian dollar was trading 0.2pc higher at 1.3163 to the greenback, or 75.97 U.S. cents. The currency touched its strongest intraday level since Sept. 11 at 1.3157.
The gain for the loonie came ahead of a federal election on Monday. Opinion polls show that Prime Minister Justin Trudeau's Liberal Party, in power since 2015, is locked in a tie with the opposition Conservatives and will lose its majority in the House of Commons.
Canadian government bond prices were lower across the yield curve in sympathy with U.S. Treasuries.
The two-year fell 1.8 Canadian cents to yield 1.654pc and the 10-year was down 11 Canadian cents to yield 1.560pc.
The 10-year yield touched its highest intraday since July 16 at 1.608pc.