* C$ closes at C$1.0461 to the US$
* Commodities and data help fuel gain
* Bond market closed for Remembrance Day (Recasts)
TORONTO, Nov 11 (Reuters) - Canada's currency rose to its highest close in three weeks on Wednesday in a listless session in which firmer commodities prices sparked an early rally before activity ground to a halt later in the day.
Chinese factory output data that signaled the world's third-largest economy had put the worst of the global financial crisis behind it also helped sentiment. [ID:nPEK212006]
The Chinese report helped send gold prices to record highs near $1,120 an ounce while oil prices firmed above $79 a barrel. [GOL/] [O/R] Both are key Canadian exports and their prices often influence the direction of the Canadian dollar.
The Canadian dollar rallied to C$1.0433 to the U.S. dollar, or 95.85 U.S. cents, early in the day, its highest level since Oct. 22, before backing off as trade became muted trade as Canada observed Remembrance Day and the United States observed Veterans Day.
"As soon as (European traders) left late morning things just kind of ground to a halt and we've been in a ... range all afternoon," said David Bradley, director of foreign exchange trading at Scotia Capital.
Compounding the domestic currency's gain was a greenback that extended a recent slide on concerns about the U.S. economy and expectations for interest rates to remain low.
A bevy of U.S. Federal Reserve officials have bolstered that view this week, warning the recovery would be erratic and hinting that interest rates will remain low for some time.
"I would imagine with recent Fed speak kind of indicating that interest rates in the U.S. could be on hold past 2010 that you're going to continue to see a deterioration in the U.S. dollar, which will be Canadian-dollar positive," Bradley said.
The Canadian dollar closed at C$1.0461 to the U.S. dollar, or 95.59 U.S. cents, up from C$1.0501 to the U.S. dollar, or 95.23 U.S. cents, at Tuesday's close. That was its highest close since Oct. 21 and its third straight day of gains.
The Canadian bond market was closed on Wednesday for Remembrance Day.
Activity could pick up for the remainder of the week as investors digest September data for new house prices on Thursday, followed by Friday's September trade report. (Editing by Peter Galloway)
Our Standards: The Thomson Reuters Trust Principles.