The Canadian dollar advanced against the world's reserve currency on Monday after uplifting economic data from the U.S. and China prompted a brighter outlook for the nation whose economy is based on exporting its natural resources, according to Bloomberg.
The host of the globe's top two economies disclosed strong manufacturing data, which also allayed recent concerns about a slackening pace of development and growth in China, the number two economy. The pace of development in the U.S. is believed to be gaining strength as result of data from the U.S. Institute for Supply Management, which one economist found uplifting.
"The composition of today's reading was also encouraging, with strong gains in the production and employment components," economist Kristen Cornelson with RBC told the Canadian Press on Monday. "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."
Bank of Canada governor Mark Carney is set to speak in Waterloo on Monday, which probably will influence the performance of the loonie.