Aust dollar higher at noon, bonds weaker THE Australian dollar was sitting above 104.5 US cents at noon after traders responded positively to a shrinking trade deficit. At 1200 AEDT on Wednesday, the Australian dollar was at 104.65 US cents, up slightly from Tuesday's local close of 104.61 US cents. The Australian dollar climbed almost two-tenths of a US cent after the Australian Bureau of Statistics said the nation's trade balance narrowed to $178 million in February, compared with the $1.215 billion deficit in January. The currency reached its intraday high of 104.69 US cents after the figures were published at 1130 AEDT, from 104.49 US cents shortly beforehand. CommSec chief economist Craig James said although the stronger currency would be welcomed in some quarters, it would put more pressure on a number of local industries. "For some businesses, such as manufacturers and tourism, anything associated with exports, they would see the lift in the Aussie dollar as a negative development rather than a positive development," Mr James said. Meanwhile, the Australian bond market was weaker at noon. At 1200 AEDT on Wednesday, the June 10-year bond futures contract was trading at 96.530 (implying a yield of 3.470 per cent), down from Tuesday's local close of 96.590 (3.410 per cent). The June three-year bond futures contract was at 97.060 (2.940 per cent), down from 97.110 (2.890 per cent) previously.