The Aussie rallied against the greenback to its highest level in 2 1/2 months on the back of data that showed solid growth in exports to China, the country's largest trading partner, over the past year.
China posted a trade deficit of $US0.88 billion for March, compared with an expected surplus of $US15.2bn. In a breakdown of the report, the value of Australian exports to China in the year to March rose 18.4 per cent.
Commonwealth Bank of Australia chief currency strategist Richard Grace said the data underscored the strength of Australia's resource 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 4.35pm AEST, the dollar was trading at $US1.0513 compared with $US1.0435 late yesterday. It traded as high as $US1.0519 in Asia.
