The Australian dollar was broadly firmer on Thursday, in part on a narrowing in the country's trade deficit, while talk of an imminent UK rate cut lifted it to a decade high against the British pound. A widening yield advantage also assisted the Aussie's climb to $0.8840, from $0.8821 on Wednesday, and it topped 45.20 pence for the first time since 1997.
Traders said option-related resistance was stiff around $0.8855/60 and investors remained wary about leveraged trades in high-yielding currencies while equities were so volatile.