The Australian dollar is firmer as surprisingly positive trade figures continue to give it a boost.
At 0700 AEDT on Friday, the local unit was trading at 89.63 US cents, up from 89.60 US cents on Thursday.
The Aussie dollar hit a four-week high of 89.82 US cents on Thursday after Australian Bureau of Statistics data showed a surplus of $468 million in December, following a surplus of $83 million in November.
BK Asset Management MD Boris Schlossberg said the trade figures had increased people’s confidence in the Australian economy.
“It has alleviated people’s fears that the Australian economy was wavering on the precipices of a recession,” Schlossberg said.
“The fact that trade went into a surplus surprised many people and in combination with the RBA’s (Reserve Bank of Australia) move away from dovish to neutral shows the Australian economy is starting to make a turn for the positive.”
Meanwhile, US figures released overnight showed America’s trade deficit widened sharply in December following a decline in exports.
The deficit rose to $US38.7 billion ($A43.5 billion) in December, a 12 per cent increase from November’s upwardly revised $US34.6 billion level, the Commerce Department said.
AAP