The Australian dollar surged to a 14-month high on Wednesday. (Greg Wood/AFP/Getty Images)
At 1700 AEDT, the local currency was trading at 91.41 US cents, up from Tuesday's close of 90.75 cents.
During the domestic session, the unit traded between a low of 90.55 US cents and a late afternoon high of 91.44 cents, the unit's highest level since August 6, 2008.
The local unit first breached the 91 US cents mark during Tuesday's offshore session to touch 91.27 cents.
4Cast financial markets research group head of research Ray Attrill said the local unit fed off a range of positive economic leads, including a strong domestic consumer confidence report, better-than-expected Chinese import data as well as a weakening US dollar.
"It's the not-so-little Aussie battler," he said.
"Sentiment against the US dollar has been bad ... it's been a little soggy all day."
The Westpac/Melbourne Institute Index of Consumer Sentiment rose by 1.7 per cent in October.
The index is 47.9 per cent higher than its value a year ago and at its highest level since June 2007.
Meanwhile, Chinese exports fell to $US115.9 billion ($A127.54 billion) since September last year and imports were down 3.5 per cent to $US103 billion ($A113.35 billion), customs authorities in Beijing said.
Mr Attrill said the data played into the theme of global economic recovery and prompted investor appetite for risk to lift the local unit and the local stock market to new highs.
The Australian sharemarket rose to a new 12 month high with the benchmark S&P/ASX200 index ending up 0.95 per cent, to 4831.1, while the broader All Ordinaries added 0.92 per cent, to 4834.
It was the highest close for the S&P/ASX200 since September 26, 2008 and the highest for the All Ordinaries since September 29, 2008.
At 1700 AEDT, the Australian dollar was trading at 81.37 Japanese yen, down from Tuesday's close at 81.60 yen, and at 61.41 euro cents, up from 61.36 euro cents previously.
The euro finished at 1.4887 US dollars, up from Tuesday's close of 1.4786 US dollars, and at 132.50 Japanese yen, down from 132.78 previously.
The US dollar ended the local session at 89.01 Japanese yen, down from 89.91 yen previously.
Meanwhile, the Australian bond market closed weaker.
At 1630 AEDT, the yield on the Commonwealth Government March 2019 bond was at 5.361 per cent, up from Tuesday's close of 5.332 per cent, while the yield on the April 2012 bond was at 4.972 per cent, up from 4.942 per cent previously.
On the Sydney Futures Exchange, the December 10-year bond futures contract price was at 94.565, down from Tuesday's close of 94.610, while the December three-year bond futures contract was at 94.850, down from 94.880 previously.
UBS senior economist Matthew Johnson said debt assets were weaker after US computer chip maker Intel beat market forecasts for its third quarter earnings and the consumer confidence figures.
"The Intel results had the market starting on the back foot," Mr Johnson said.
"Then it sort of had a bit of an off tone after the stronger consumer confidence data."
The 90-day bank bill rate closed at 3.830 per cent, up on Tuesday's close of 3.810 per cent, while the 180-day bank bill rate closed at 4.190 per cent, up from 4.110 per cent previously.
At 1600 AEDT, the Reserve Bank of Australia's trade weighted index (TWI) was at 70.1, up from Tuesday's close of 69.9.
It was the highest close for the TWI since it finished the domestic session at 70.2 on August 7, 2008.
