Commodity currencies such as the Australian, the New Zealand and the Canadian dollars strengthened against their major counterparts in the Asian session on Friday, after data showed that China's exports increased at a faster-than-expected pace in January.

Data from the General Administration of Customs showed that China exports grew 7.9 percent year-over-year in January, well above the 3.0 percent climb expected by economists. Imports surged 16.7 percent annually at the start of the year, much faster than the expected increase of 10.0 percent.

The visible trade surplus of the country came in at $51.35 billion in January. The expected surplus for the month was $48.5 billion.

Also, the Asian stock markets traded higher, tracking the record closing highs overnight on Wall Street after U.S. President Donald Trump said that a "phenomenal" plan to lower the tax burden on American business will be announced in the next few weeks. Higher crude oil prices also boosted investor sentiment.

In other economic news, data from the Australian Bureau of Statistics showed that the total number of new home loans in Australia was up a seasonally adjusted 0.4 percent on month in December, coming in at 54,912. That missed forecasts for a gain of 1.0 percent following the 0.9 percent gain in November.

In the Reserve Bank of Australia's quarterly Statement on Monetary Policy, the bank said that some of the factors that caused contraction in the September quarter were temporary and have not materially affected the outlook.

The growth outlook for the year ended June 2017 was lowered by 1 percentage point citing the "base effect" of the weak September quarter.

Thursday, the Australian dollar showed mixed trading against its major rivals. While the aussie rose against the yen, it fell against the U.S. dollar and the euro.

The NZ dollar had fallen 1.47 percent against the U.S. dollar, 0.08 percent against the U.S. dollar and 0.75 percent against the euro.

The Canadian dollar had risen 0.03 percent against the U.S. dollar, 1.03 percent against the U.S. dollar and 0.37 percent against the euro.

In the Asian trading, the Australian dollar rose to nearly a 2-year high of 1.3928 against the euro, a 2-week high of 87.00 against the yen and nearly a 3-month high of 1.0636 against the NZ dollar, from yesterday's closing quotes of 1.3972, 86.33 and 1.0608, respectively. If the aussie extends its uptrend, it is likely to find resistance around 1.36 against the euro, 88.00 against the yen and 1.07 against the kiwi.

Against the U.S. dollar, the aussie advanced to 0.7657 from yesterday's closing value of 0.7624. The aussie may test resistance around the 0.78 area.

The aussie edged up to 1.0049 against the Canadian dollar, from an early 3-day low of 1.0003. On the upside, 1.01 is seen as the next resistance level for the aussie.

The NZ dollar rose to a 2-day high of 81.87 against the yen, from yesterday's closing value of 81.37. The kiwi may test resistance near the 83.00 region.

Against the euro and the U.S. dollar, the kiwi edged up to 1.4795 and 0.7206 from yesterday's closing quotes of 1.4822 and 0.7186, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 1.45 against the euro and 0.73 against the greenback.

The Canadian dollar rose to a 1-week high of 86.68 against the yen, from yesterday's closing value of 86.12. The loonie may test resistance near the 88.00 region.

Against the euro and the U.S. dollar, the loonie advanced to 1.3987 and 1.3121 from yesterday's closing quotes of 1.4008 and 1.3139, respectively. If the loonie extends its uptrend, it is likely to find resistance around 1.38 against the euro and 1.29 against the greenback.

Meanwhile, the safe-haven yen fell against its major rivals amid risk appetite.

In economic news, data from the Bank of Japan showed that the producer prices in Japan climbed 0.6 percent on month in January. That exceeded forecasts for an increase of 0.2 percent following the upwardly revised 0.7 percent gain in December. On a yearly basis, producer prices gained 0.5 percent, again topping expectations for a flat reading following the 1.2 percent contraction in the previous month.

The yen fell to a 4-day low of 121.33 against the euro and a 1-week low of 113.64 against the Swiss franc, from yesterday's closing quotes of 120.65 and 113.05, respectively. If the yen extends its downtrend, it is likely to find support around 124.00 against the euro and 115.00 against the franc.

Against the pound and the U.S. dollar, the yen dropped to an 8-day low of 142.37 and a 9-day low of 113.79 from yesterday's closing quotes of 141.47 and 113.23, respectively. The yen may test support near 146.00 against the pound and 116.00 against the greenback.

Looking ahead, U.K. industrial production, trade balance and construction output - all for December, are due to be released at 4:30 am ET.

At 4:50 am ET, ECB Board Member Yves Mersch will give a presentation at Expertentag of Stiftung Marktwirtschaft in Hamburg, Germany.

At 5:00 am ET, Bundesbank President Jens Weidmann will give a speech at a leadership handing-over ceremony at Bundesbank's Hamburg branch.

In the New York session, Canada jobs data for January, U.S. import price index for January, U.S. University of Michigan's preliminary consumer sentiment index for February are slated for release.

At 2:00 pm ET, U.S. federal budget balance report is set to be published.

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