Dollar higher at noon

THE Australian dollar was higher at noon, climbing above 105 US cents in response to better-than-expected Chinese imports data.
At 12.20pm AEST today, the Australian dollar was at 105.11 US cents, up from yesteray's local close of 104.24 US cents. The local currency soared to its intraday high of 105.17 US cents after Chinese data showed imports grew 14.1 per cent in March, more than double economists' forecasts of a six per cent rise.

"That surprise 14 per cent jump in imports is really encouraging, considering the figure from the prior month was down over 15 per cent," FOREX.com research analyst Chris Tedder said.

"Considering the intention of Beijing to shift towards a more domestic demand based economy, we want to see those improvements in imports."

Exports also rose 10 per cent in March, but the result was well down from a 21.8 per cent rise the previous month and slightly below expectations of an 11.7 improvement. It was the first time in four months Chinese exports had come in below estimates. Trading conditions had been light ahead of the Chinese figures, with the Australian dollar little changed in response to a surprising fall in consumer confidence and an upbeat assessment of the local economy from the central bank.

Mr Tedder said the Australian dollar was expected to consolidate above 105 US cents during the rest of the Asian trading session.

Meanwhile, the Australian bond market was weaker. At 12.20pm AEST, the June 10-year bond futures contract was trading at 96.745 (implying a yield of 3.255 per cent), down from yesterday's local close of 96.760 (3.24 per cent). The June three-year bond futures contract was at 97.210 (2.79 per cent), down from 97.220 (2.780 per cent).