The Australian dollar is on a tear, jumping to a 3-month high

Photo by Christian Petersen/Getty Images for IAAF)

The Australian dollar is flying on Thursday, surging to a near 3-month high against the US dollar.

The AUD/USD currently sits at .7644, leaving it at the highest level seen since November 11 last year.

It has rallied by 6% since the start of the year.

AUD/USD 4-Hour Chart

The catalyst to spark the latest buying frenzy was news that Australia’s trade surplus ballooned to the highest level on record in December.

According to the Australian Bureau of Statistics (ABS), it swelled to $3.511 billion in seasonally adjusted terms, smashing market expectations for an increase to $2.2 billion.

It easily breezed past the previous record high of $2.236 billion set in February 2009.

Not only was it a record high in dollar terms, many believe that an accompanying lift in export volumes over the quarter greatly reduces the odds of Australia suffering a technical recession following a shock 0.5% contraction in Q3.

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