The Canadian dollar was barely changed against its U.S. counterpart on Tuesday as oil prices fell and data showed a widening of the Canadian trade deficit that was close to expectations.
The loonie was trading nearly unchanged at 1.3775 per U.S. dollar, or 72.60 U.S. cents, after moving in a range of 1.3764 to 1.3810.
"Despite the usual volatility, Canada's trade figures came in line with expectations for June," Shelly Kaushik, a senior economist at BMO Capital Markets, said in a note.
"While trade flows have recovered a touch from the spring, normalization is unlikely until the Canada-U.S. relationship stabilizes."
The price of oil, one of Canada's major exports, fell 1.4% to $65.35 a barrel on rising OPEC+ supply and worries of weaker global demand, while the U.S. dollar steadied against a basket of major currencies.
Canada's employment report for July, due on Friday, could offer further clues on the state of the domestic economy. A Reuters poll of economists expects a gain of 13,500 jobs.
The Canadian 10-year yield was little changed at 3.382% after earlier touching its lowest level since July 7 at 3.360%.
