THE dollar was more than 1.5 US cents higher at noon, as fresh data showed a surge in Chinese exports and an improved outlook for the domestic jobs market.
A weaker US dollar following some disappointing US jobs data released on Friday night (AEDT) also benefitted the local currency.
At 12:00 (AEDT), the dollar was trading at $US0.9304/07, up from Friday's close of $US0.9134/37.
Since 07:00 AEDT, the local unit has traded between $US0.9271 and $US0.9310.
Commonwealth Bank chief currency strategist Richard Grace said US dollar weakness, which was driven the disappointing US non-farm payrolls report, had assisted the Australian dollar in early trade.
"That's helped it because the US dollar has softened a bit, but you also had some Chinese trade data out which showed a very strong surge in Chinese imports, up 55 per cent from a year ago, so I think that has given it an extra kick along,'' Mr Grace said.
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China's exports surged 17.7 per cent in December to snap a 13-month falling streak, the government said on Sunday, cementing the Asian power's new status as the world's biggest exporter.
Data out of Germany last week showed that China overtook Europe's biggest economy in November to become the world's top exporting nation.
The US Labor Department report on non-farm payrolls was a disappointment to those hoping for job growth.
The US economy lost 85,000 jobs in December, worse than concensus market expectations for no change in overall employment levels, while the unemployment rate was steady at 10.0 per cent.
Mr Grace said the local currency could push as high as $US0.9325 this afternoon.
"That's certainly possible,'' he said.
"When London comes in, it will push us a little bit higher.''
He said the release of ANZ job ads figures showing the number of jobs advertised in major newspapers and online rose by 6.0 per cent in December, the strongest monthly rise in two-and-a-half years, had also helped the local unit.
"It is pretty supportive for the Aussie, given what it means for the labour market picture,'' Mr Grace said.
Dollar lower at noonHousehold wealth rises but still far below peak
