TORONTO – The Canadian dollar was higher Wednesday as traders balanced strong European economic data with another report that showed a deepening slowdown in China’s manufacturing sector.

The loonie was up 0.14 of a cent to 97.37 cents US amid mixed commodities.

A HSBC survey showed China’s manufacturing at an 11-month low this month, a disappointing performance that puts pressure on Chinese leaders to reverse a deepening slowdown in the world’s second-largest economy. HSBC said the preliminary version of its monthly purchasing managers index declined to 47.7 this month from June’s 48.2 on a 100-point scale on which numbers below 50 show a contraction in activity.

“While government officials have done their best to clarify they won’t allow growth to fall below seven per cent, markets likely won’t be convinced that’s the case until the economic data stabilize,” said BMO Capital Markets senior economist Benjamin Reitzes.

Meanwhile, financial information company Markit said a broad gauge of economic activity in the eurozone rose for a fourth month in a row. Its monthly purchasing managers’ index for the 17-country currency union rose to 50.4 points in July from 48.7 the previous month. Anything above 50 indicates an expansion.

Oil prices weakened amid the weak Chinese manufacturing data while traders awaited the latest U.S. inventory figures.

The September crude contract on the New York Mercantile Exchange was down 40 cents to US$106.83 a barrel.

Analysts expected a decline in crude oil inventories of 2.6 million barrels for the week ended July 19. That would bring the four-week drop to nearly 30 million barrels.

Metal prices advanced with September copper up three cents to US$3.23 a pound while August bullion gained $1.50 to US$1,336.20 an ounce.