Australian dollar edges higher as markets adjust to Trump win

The Aussie dollar has firmed after global markets staged a major turnaround following Donald Trump’s victory.

The Australian dollar has firmed as global financial markets adjust to Donald Trump’s surprise US presidential victory.

At 7am (AEDT), the local unit was trading at US76.48 cents, up from US76.19 cents yesterday.

Mr Trump’s remarkable win initially damaged risk appetite, sending US stock market futures tumbling and driving risk currencies like the Australian dollar plummeting yesterday.

But global risk appetite did an astonishing turnaround overnight with Wall Street rising one per cent after an initial steep sell-off, said Westpac senior market strategist Imre Speizer.

European stocks also rose more than one per cent with Germany’s DAX closing 1.6 per cent higher.

Mr Speizer said the markets’ uncertainty about a Trump presidency had eased giving risk currencies, like the Australian dollar, support.

“Markets appeared to reassess the economic outlook under Trump, towards one of higher growth,” he said.

AAP