The Australian dollar is slightly higher against the US dollar after financial markets stabilised somewhat after the initial shock from the US government’s announcement that it will impose tariffs on its trading partners.

At 0635 AEDT on Monday, the Australian dollar was worth 77.70 US cents, up from 77.61 US cents on Friday.

The S&P 500 index on Wall Street, was up 0.51 per cent on Friday after falling 1.33 per cent on Thursday.

BK Asset Management managing director of FX strategy Kathy Lien said the Australian dollar has struggled to make meaningful gains amid pessimism about a looming trade war.

“The Australian dollar ended the week near its lows on the back risk aversion and softer Australian data,” she said.

AAP

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