Photo: The Canadian Press. All rights reserved.

The Canadian dollars (loonies) are pictured in Vancouver, B.C,, Sept. 22, 2011. THE CANADIAN PRESS/Jonathan Hayward

The Canadian dollar gained back some ground Thursday morning as commodity prices moved higher amid expectations of a move by China to stimulate its economy.

The loonie gained 0.22 of a cent to 101.72 cents US.

Meanwhile, the benchmark New York oil contract was $1.20 ahead at US$91.19 a barrel, the December gold contract added $10.10 to US$1,763.70 an ounce and the December copper contract rose three cents to US$3.74 a pound.

Improved sentiment is being helped by expectations the People's Bank of China will soon take more steps to ease a slowdown in the world's No. 2 economy.

In addition, the heads of the three parties in Greece's governing coalition have struck a basic deal on a new round of harsh austerity measures required for the country to continue getting vital rescue loans, officials said Thursday.

Finance Minister Yiannis Stournaras said the long-delayed agreement placed him in a stronger negotiating position ahead of talks Monday with representatives of the country's bailout creditors, who will have the final word on the cutbacks.