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$A higher on rise in China's exports

The Australian dollar opened higher after reports of a surge in Chinese exports lifted commodity-driven currencies.

At 0700 AEST on Thursday, the Australian dollar was trading at $US0.8278/85, up 0.27 per cent from Wednesday's close of $US0.8257/60.

Since 1700 AEST on Wednesday, the local unit traded between $US0.8233 and $US0.8357, according to IRESS data.

Demand for commodity-driven currencies rose after unconfirmed reports on Wednesday of Chinese sources saying the nation's exports rose around 50 per cent from a year before in May.

China is the world's second largest economy and Australia's largest trading partner.

Official trade data from China are due for release on Thursday.

Commonwealth vice-president of institutional banking and markets, Tim Kelleher, said the initial rally in the Australian dollar from late Wednesday afternoon (AEST) to its intra-session high was on reports of the growth in China's exports.

"The Chinese export data was a lot stronger," Mr Kelleher said from Auckland.

"There was a bit of a rally late in the day, so we saw a bit of relief buying in the Aussie and the Kiwi."

Mr Kelleher said the Australian dollar pared its gains after equity markets in the US closed lower on Wednesday (Thursday morning AEST).

Wall Street ended down after a late-session slide on continuing concerns about the BP oil disaster in the Gulf of Mexico.

The Dow Jones industrial average closed down 0.41 per cent, while the broader-based Standard & Poor's 500 index was 0.59 per cent lower.

"The Dow has come off late in the day, so that it (the Australian dollar) is why we have seen it come off," he said.

Economic events due locally on Thursday include the labour force report for May from the Australian Bureau of Statistics.

An AAP survey of economists found a median forecast of 15,000 jobs to have been created in May, the unemployment rate to stay at 5.4 per cent and the participation rate to remain at 65.2 per cent.

Mr Kelleher forecast the Australian dollar would trade between US$0.8250 and US$0.8300 on Thursday.

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

More about: AAP, Australian Bureau of Statistics, Dow Jones, Wall Street

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