The Australian dollar surged against the US dollar to its highest level in 2 1/2 months on the back of data that showed solid growth in exports to China, the nation's largest trading partner, over the past year.
Australian exports to China in the year to March rose 18.4 per cent.
Commonwealth Bank chief currency strategist Richard Grace said the data underscored the strength of Australia's resources exports to China, the world's second-largest economy.
China imports huge amounts of iron ore and coal from Australia to support its economic expansion, so any shift in trade flows has a significant impact on the Australian economy.
At 5pm AEST, the dollar was trading at $US1.0509, up US0.85c. It traded as high as $US1.0519 during the session.
Bank of America Merrill Lynch said in a note to clients that China's weak trade data would further ease concerns about inflation, keeping the risk of policy tightening at bay.
