The reason for using the xor trick, was for part of a process known as layering with a back-buffer, or fast zone animations. You could use an xor copy and paste, with masks, to capture and restore elements.

The canvas is a accelerated display, with a built-in back-buffer that you can't control. However, you can simulate some of the effects.

You draw your circle, then when they move it, you copy the needed rect-area of the background image, over the circle. Then draw the circle in the new location. (Might be able to be done in the same "call", which is when canvas uses the back-buffer to do the called drawing, before pushing it to the screen as a single flip-flopped refresh.)