THE Australian dollar has rallied to its highest level in more than two months, helped along by Chinese trade data. At 1700 AEST on Wednesday, the currency rose to 105.09 US cents, up from Tuesday's local close of 104.24 US cents. It reached an intra-day peak of 105.19 US cents on Wednesday afternoon, its highest level since late January. Westpac chief currency strategist Robert Rennie said the currency received a boost after Chinese trade figures showed a rise in exports during March. He said the currency was also benefiting from rising demand for Australian government bonds due to Japan's stimulus efforts. The Bank of Japan has announced it will buy Y7 trillion of Japanese government bonds a month in an effort to lift inflation after decades of economic stagnation. Mr Rennie said the Australian dollar could move above 105.20 US cents, which is considered an important technical level for the currency, this week, which would allow it to continue to rally. "If we break up through 105.20 we could start to move higher," he said, And I think it looks like we could do that. Mr Rennie said the key local driver for the Australian dollar on Thursday would be the release of official Australian employment figures for March. At 1700 AEST, the Australian dollar was trading at 104.17 Japanese yen, up from 103.15 yen on Tuesday, and was at 80.30 euro cents, up from 79.98 euro cents. Meanwhile, Australian bond futures prices dropped following gains on global stock markets.