The Australian dollar is slightly higher as US stocks rise on the back of easing fears about a trade war between China and the US.

At 0635 AEST on Tuesday, the local currency was worth 76.99 US cents, up from 76.92 US cents on Monday.

The major Wall Street indexes closed slightly higher as strength in technology shares and a softer stance by US policymakers on China trade tariffs powered a rebound from last week’s selloff.

US President Donald Trump’s economic adviser Larry Kudlow told CNBC that the president may be open to forming an international coalition to grapple with Chinese trade issues.

One Australian dollar buys 82.18 Japanese yen, from 82.38 yen and 62.50 euro cents, from 63.58 euro cents.

AAP

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