The Australian dollar edged higher on Thursday after the country's trade surplus swelled to a near two-year peak in September helped by a bumper run in resource exports, while the New Zealand dollar was also buoyant. Data from the Australian Bureau of Statistics (ABS) showed the country's trade surplus climbed to A$3.02 billion when analysts had looked for A$1.7 billion.
That took the third-quarter surplus to A$6.4 billion, almost three times the size of the second quarter's A$2.2 billion. Separate data showed export prices for the third-quarter ended September sprang 3.7 percent while import values climbed 1.9 percent.
The strong numbers sent the Aussie to the day's high of $0.7118, recovering all of the losses from the previous session. Across the Tasman Sea, the New Zealand dollar jumped 0.6 percent to $0.6553 from Tuesday's $0.6515. The kiwi slipped 1.5 percent last month but has started November on a firm footing.
The gains in the kiwi came amid broader US dollar selling after a report that British Prime Minister Theresa May has struck a deal with the European Union on financial services. This would give these companies continued access to European markets after Brexit, the report said. The news sent the pound 0.6 percent higher while the euro gained 0.2 percent.
The dollar's index eased 0.3 percent from a 16-month high following strong economic data. New Zealand government bonds eased, sending yields about 2-3 basis points higher across the curve. Australian government bond futures slipped, with the three-year bond contract and the 10-year contract down 3 ticks each at 97.920 and 97.335 respectively.