China's exports rebounded in March but imports shrank for a fourth straight month and at a sharper pace, painting a mixed picture of the economy as trade talks with the United States reach their endgame.

Canada is a major exporter of commodities, including oil, so its economy could benefit from an improved outlook for global trade and growth.

Oil prices rose on Friday as involuntary supply cuts from Venezuela, Libya and Iran supported perceptions of a tightening market, already underpinned by a production reduction deal from OPEC and its allies. US crude oil futures were up 1.1% at $64.27 a barrel. At 9:26 a.m. (1326 GMT), the Canadian dollar was trading 0.5% higher at 1.3320 to the greenback, or 75.08 US cents. The currency, which was also up 0.5% for the week, traded in a range of 1.3313 to 1.3386.

The loonie made ground despite data showing Canadian home prices fell in March for the sixth straight month.

Canadian government bond prices were lower across a steeper yield curve in sympathy with US Treasuries. The two-year fell 6.8 Canadian cents to yield 1.625% and the 10-year was down 42 Canadian cents to yield 1.77%.

Ontario, Canada's most populous province and industrial powerhouse, projected a smaller budget deficit in the current fiscal year and a return to balance by 2023-24 as it disclosed plans to reverse the growth in spending.

The gap between the yield on the province's 10-year bonds and the equivalent federal government bond has narrowed by 3 basis points since Wednesday to 70.5 basis points.