The Australian dollar is higher, after confidence on financial markets got a boost by statement from US government that it is prepared to negotiate with China to ease escalating trade tensions.

At 0635 AEST on Thursday, the local currency was worth 77.16 US cents, up from 76.93 US cents on Wednesday.

President Donald Trump’s administration says talks with Beijing could resolve an escalating US-China trade fight after China retaliated against US proposals to slap tariffs on US$50 billion (A$65 billion) in Chinese goods by targeting key American imports with similar duties.

One Australian dollar buys 82.43 Japanese yen, from 82.04 yen and 62.84 euro cents, from 62.71 euro cents.

AAP

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