Canada posted a trade surplus of C$594-million in April, as imports fell at a much faster rate than exports amid a major decrease in the trade of motor vehicles and parts, Statistics Canada said.
Analysts had predicted a deficit of C$700-million after a revised C$1.35-billion deficit in March.
The price of oil, one of Canada’s major exports, was pressured by profit taking and a stronger U.S. dollar , but overall optimism about strong demand recovery kept a floor under prices.
U.S. crude prices fell 0.6 per cent to $68.85 a barrel, while the Canadian dollar was trading nearly unchanged at 1.2088 to the greenback, or 82.73 U.S. cents.
The currency traded in a tight range of 1.2071 to 1.2095, with investors awaiting a Bank of Canada interest rate decision on Wednesday. The central bank is widely expected to leave its key interest rate on hold at 0.25 per cent.
In April, the BoC became the first among Group of Seven central banks to reduce the scope of its pandemic support. Further tapering of its asset purchase program is expected next quarter, a Reuters poll showed.
Investors were also weighing reports that Canada is preparing to ease restrictions at the U.S. border.
Canadian government bond yields were lower across a flatter curve, tracking the move in U.S. Treasuries. The 10-year fell to its lowest since April 15 at 1.439 per cent before edging back up to 1.445 per cent, down 3.2 basis points on the day.
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