The Australian currency closed more than one US cent stronger on Wednesday following the release of better than expected official local economic figures and strong China data.

At 5pm (AEST) today, the domestic dollar was changing hands at $US0.9010/12, well above Tuesday's finish of $US0.8893/96.

The Aussie soared after data revealed local economy grew at its greatest speed in three years in the June quarter as trade with its Asian neighbours roared and consumer spending expanded.

Investors took heart in data indicating that China's manufacturers produced at a healthy clip in August as this assured them there was still strong demand for Australian commodities from the nation's largest export market.

Since 7am, the local currency exchanged from $US0.8880 to $US0.9004.

Traders said a range of investors including speculators and mutual funds bought the currency.

"Everything is on fire today and there was broadbased buying," said a trader at a major US bank. He said the Australian dollar could accelerate its rise if it jumps above $US0.9020, where stop-loss buy orders were seen.

TD Securities senior strategist Annette Beacher said the Aussie was lifted by official figures showing the local economy improved by 1.2 per cent in the June quarter for an annual rate of 3.3 per cent.

Both figures exceed market expectations.

The Australian Bureau of Statistics (ABS) data showed impressive household consumption and terms of trade were the primary drivers behind the strong GDP headline numbers.

A second contributing factor to the Aussie's ascent was China manufacturing data published during the trading day, Ms Beacher said.

The HSBC China Manufacturing PMI, or purchasing managers index, rose to a three-month high of 51.9 last month from 49.4 in July.

"GDP told us about the past and the Chinese PMI is telling us about the future."

Ms Beacher, however, forecasts the next 48 hours will be quiet for the local unit ahead of US non-farm payrolls data scheduled on Friday.