The Australian dollar is higher as US stocks start to recover after their worst weekly performance since January 2016.

At 0635 AEDT on Monday, the local currency was worth 77.45 US cents, up from 77.21 US cents on Monday.

Westpac head of NZ strategy Imre Speizer said a more risk-friendly atmosphere returned to US markets, which helped the Dow Jones index and the S&P 500 gain more than two per cent.

“US-China trade tensions appearing to ease, with US Treasury Secretary Mnuchin voicing optimism a deal could be reached,” he said.

AAP

Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.