TORONTO - The Canadian dollar advanced Thursday as commodity prices made gains in the wake of strong economic data from China. The loonie rose 0.41 of a cent to 101.47 cents US. China's manufacturing sector gained momentum in February, helped by strength in new orders, export demand and production. The state-affiliated China Federation of Logistics and Purchasing said its purchasing managers index, or PMI, rose 0.5 points to 51.0 from January’s 50.5 and December’s figure of 50.3 in a third straight month of steady improvement. The better than expected Chinese data is good news for Canada since the world's second-biggest economy has a huge appetite for commodities, including coal, copper and oil. The May copper contract climbed three cents to US$3.91 a pound. Signs of an improving U.S. economy and hopes that China will loosen lending requirements to encourage growth boosted copper prices about 2.5 per cent during February. China is the world's biggest consumer of copper, viewed as an economic bellwether as it is used in so many businesses. Oil prices rose for a second day with the April contract on the New York Mercantile Exchange ahead 45 cents to US$107.52 barrel. Prices had gained 52 cents Wednesday despite data showing that U.S. crude supplies grew more than expected last week amid weak gasoline demand. Bullion prices dipped after tumbling almost US$80 on Wednesday as the latest U.S. economic data and comments by U.S. Federal Reserve chairman Ben Bernanke sent a signal that the central bank won't be embarking on another round of quantitative easing, which has involved printing money in order to buy government bonds. Gold prices have benefitted from past rounds of QE and speculation over further measures because of the inflation implications of such stimulus measures. The April bullion contract on the Nymex was off 80 cents to US$1,710.50 an ounce. Read it on Global News: Global News | Canadian dollar rises, commodities advance in wake of strong Chinese data

Source