Investing.com - The Aussie gained on Thursday in Asia after a narrower than expected trade gap and an upbeat services index reading.
AUD/USD traded at 0.7309, up 0.19%, while USD/JPY changed hands at 113.72, up 0.22%.
Australia reported exports rose 1% and imports fell 1% month-on-month for January with a trade balance deficit seen of A$2.937 billion, narrower than the A$3.1 billion seen.
The Caixin Services PMI for February came in at 51.2, below the 52.6 seen, and down from 52.4 the previous month.
Earlier in Australia, the AIG services index for February came in at 51.8, reaching expansion after a reading of 48.4 last month.
"While the return to expansion is clearly encouraging the picture painted by the Australian PSI is still one of fragility and vulnerability," AI Group Chief Executive Innes Willox said.
"This should be a warning to policymakers against an excessively restrictive federal budget in May and highlights the room for a targeted lift in
incentives for business investment."
Japan needs both aggressive monetary easing and government structural reform aimed at boosting labor productivity in order to overcome years of deflation and achieve sustained growth, Bank of Japan Deputy Governor Hiroshi Nakaso said Thursday.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 98.20.
Overnight, the dollar continued to trade near one-month highs against the other major currencies on Wednesday, as the release of upbeat U.S. private sector employment data added to optimism over the strength of the economy.
The greenback remained supported after payroll processing firm ADP said non-farm private employment rose by 214,000 last month, surpassing expectations for an increase of 190,000.
The economy created 193,000 jobs in January, whose figure was downwardly revised from a previously reported increase of 205,000.
The data came after a string of upbeat U.S. economic reports, adding to expectations for the Federal Reserve to hike interest rates again this year.
EUR/USD slid 0.37% to 1.0827.