The Australian dollar rose to a two-month high following better-than-expected trade growth in China.
At 1700 AEDT on Wednesday, the local unit was at 90.64 US cents, up from 90.03 cents on Tuesday.
The Aussie dollar has lifted to its strongest level since December 10, after the Chinese government released surprisingly good trade figures, including record iron-ore buying.
The data showed exports jumped more than expected, increasing 10.6 per cent to $US207.13 billion ($A229.81 billion), while imports were up 10.0 per cent at $US175.27 billion ($A194.46 billion).
This has eased concern of a slowdown in Australia's biggest trading partner and given the Aussie dollar a boost, ThinkForex senior markets analyst Matt Simpson said.
Mr Simpson said traders were now awaiting Thursday's release of official Australian employment figures for January.
"In the event of really good employment data we could being testing 91 US cents," he said.
"Any indications of a softer labour market could slow things down."
He said conditions were still good for the dollar to continue trading around 90 US cents in the short term, however its expected to drift down to 85 cents and possibly, as low as 80 this year.
"The broad trend is downwards, but that still allows for some wide swings in-between."