The Canadian dollar steadied near a two-week high against its U.S. counterpart on Wednesday as data showed Canada's trade balance shifting into surplus, with the currency holding on to its gains since Canada won a reprieve from U.

The Canadian dollar reacted as well, dropping to a 22-year-low against the American dollar at US$0.6854. But after U.S. President Donald Trump announced a 30-day pause of tariffs against Canada and Mexico, citing new border security measures in the two countries, the dollar has rebounded sharply.

The dollar fell slightly after U.S. President Donald Trump agreed to hold off imposing 25% tariffs on Canada and Mexico. However, a new 10% tariff on China has taken effect and the country said it will retaliate with new tariffs on select U.