TORONTO - The Canadian dollar advanced late morning Monday amid strong manufacturing data from China and the United States. The commodity-sensitive currency was up 0.47 of a cent at 100.72 cents US as prices for oil, copper and bullion gained ground. Commodity prices rallied after the U.S. Institute for Supply Management said that its manufacturing index for March came in at 53.4, slightly above expectations and up from February's reading of 52.4. A reading above 50 indicates expansion. "The composition of today's reading was also encouraging, with strong gains in the production and employment components," said RBC economist Kristen Cornelson. "On a quarterly basis, the index averaged 53.3 in the first quarter, compared to 52.4 in the fourth quarter. Today's reading therefore points to ongoing healthy growth in manufacturing and suggest that the sector continues to be a key support to overall economic growth in the first quarter of 2012." The Chinese government announced that its official purchasing managers index, a gauge of business activity, rose 2.1 points to 53.1, the highest in almost a year. However, HSBC's manufacturing PMI for China, although revised slightly upward to 48.3 from 48.1, was still below 50, which signals contraction, for the fifth month in a row. Economists said they thought the two reports at least signalled the country is heading for a soft economic landing as officials try to cool a strong economy that has forced inflation to high levels. China has been a major source of support for a global economy still recovering from the 2008 financial crisis and recession. Meanwhile, there were fresh indications that the eurozone's economy is contracting as a closely-watched survey found that the manufacturing downturn got worse in March. Financial information company Markit said Monday that its purchasing managers index fell to a three-month low of 47.7 in March from the previous month's 49. Markit says the eurozone's two powerhouse economies, Germany and France, saw activity levels deteriorate. France, in particular, fared worse with activity at a 33-month low. Optimism about China helped push the May copper contract on the New York Mercantile Exchange up eight cents to US$3.91 a pound. China is the world's biggest consumer of the metal, often viewed as an economic bellwether as it is used in so many applications. The May crude contract on the Nymex rose $1.19 to US$104.21 a barrel. Bullion prices also strengthened with the April contract up $10.30 to US$1,679.60 an ounce.

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