The Australian dollar is near its highest level in almost two weeks after Chinese international trade data showed the world’s second largest economy is still going strong. 
At 0700 AEST on Friday, the local unit was trading at 91.04 US cents, up from 90.88 cents on Thursday.
In overnight trade, the currency peaked at 91.36 US cents, its highest level since Tuesday of last week.
China’s trade surplus fell to $US17.8 billion ($A19.87 billion) in July, helped by a a 10.9 per cent rise in imports.
BK Asset Management New York MD Kathy Lien said the data was a good sign for the Australian economy, as well as the China’s.
“Australia feeds China’s thirst for iron ore and relies on its demand for growth,” she said from New York.
“The volume of iron ore imported by China in July was the largest this year, which is a very good sign for Australia’s economic outlook.
“The Australian dollar has endured some wild swings, having initially fallen on weaker local employment numbers (on Thursday) only to recover strongly on the back of Chinese data.”
Lien expects more volatility for Australian dollar with Chinese inflation and industrial production numbers for July scheduled for release on Friday as well as a quarterly statement from Reserve Bank of Australia.
On Friday morning, the RBA will release its Statement on Monetary Policy, which will include its latest economic forecasts.
AAP
