The Australian dollar has long been driven by the currents of China's economy, but analysts say it's becoming increasingly resilient to negative news flow from the mainland.
The Aussie touched a high of over 91 cents on Thursday and closed the day 0.5 percent higher against the greenback, despite weaker-than-expected Chinese data. Blow-out Australian labor market numbers which tripled expectations also aided the move higher.
"What you're seeing out of Australia is you are not seeing the economy fall off the cliff despite the fact that China is slowing down," Boris Schlossberg, managing director of BK Asset Management, told CNBC Asia's Squawk Box on Friday.
China reported its January/February combined industrial production, retail sales and fixed assets investment data on Thursday, all of which missed expectations, indicating some slowing in the Chinese economy. The weak data added to a string of other negative news flow out of the country this week, including the country's first corporate bond default in recent history and a rout in both copper and iron prices to multi-year lows.
China is Australia's largest trading partner; a slowdown in China's economy is seen as a headwind for Australia.
(Read more: Is China's slowdown actually good for the world?)
But Schlossberg said the fundamentals driving Australia's economy are changing.
"They [Australia] are able to basically recalibrate their economy away from just a pure mining and export driven economy to more of retail and services based economy," he said.
Australia's mining boom has helped strong growth levels in the country in recent decades, although in recent years analysts have said the boom is now over.
Schlossberg pointed out that as long as policy makers are able to engineer this transition from resource driven growth to more domestic growth successfully, the country's central bank, which cut rates eight times in the past two years in a bid to stimulate the economy, should have no impetus to cut rates further keeping investors' appetite for the Aussie strong.
"That's why you're seeing the bid on the Australian dollar, it's a relief rally there and it remains relatively well bid despite all the weakness out of China," he added.
Devesh Divya, currency strategist at Standard Chartered bank, expects the Australian dollar to remain resilient this year as well, but said its strength would be primarily driven by domestic factors.
"I don't think this resilience is due to a breakdown between the correlation between the Aussie and the Chinese economy," he said.
(Read more: Fresh worries over China prompt slew of downgrades)