The Australian dollar was last up 0.3 percent at $0.7109 after hitting a more than one-month trough of $0.7054 earlier this week. The currency, which is also used as a liquid proxy for Chinese growth, briefly ticked up 10 pips to as high as $0.7113 after data from China came in stronger than forecast.
The New Zealand dollar extended gains to $0.6822 as investors saw a smaller probability of any rate cuts after the country's central bank downplayed expectations for a future easing at its Wednesday meeting.
New Zealand government bonds fell, sending yields about 4 basis points higher across the curve.
Australian government bond futures were slightly firmer, with the three-year bond contract up half a tick at 98.325. The 10-year contract rose 1.5 ticks to 97.865.
China's January dollar-denominated exports rose 9.1 percent from a year earlier, while imports dropped 1.5 percent when analysts had expected both to fall for a second straight month.
The Aussie had lost almost 2.5 percent just in the past two weeks as investors narrowed the odds of policy easing after Australia's central bank signalled rates could move lower, if needed.
Nick Twidale, Sydney-based analyst at Rakuten Securities Australia, said now "all eyes move to Beijing", given the trade talks.
"Investors are once again cautiously optimistic that progress will be made and realistically an extension of the tariff deadline will be seen as a good result in the short term and should spur momentum to the topside," Twidale added. "Only evidence of a solid deal going forward will dispel the investor caution and global growth fears that have been such a feature of the trading environment over the last year."