Dollar up on trade deficit reduction

THE Australian dollar has broken above 104.5 US cents in response to better-than-expected trade figures.

THE Australian dollar has broken above 104.5 US cents in response to better-than-expected trade figures.

The Australian dollar rose to its intraday high of 104.69 cents after the Australian Bureau of Statistics said the nation's trade balance narrowed to $178 million in February, compared with the $1.215 billion deficit in January.

The result was well below market expectations of a $1 billion deficit. Exports rose three per cent in February, while imports fell one per cent.

At 11.36am AEDT, the currency was at 104.65 US cents, up from 104.49 US cents prior to the release of the ABS figures at 11.30am AEDT.