The Australian dollar has bounced after sentiment turned sour overnight as Brexit concerns intensified.

At 0700 AEST on Friday, the local unit was trading at 73.63 US cents, up from 73.48 cents on Thursday.

Next week’s vote on whether the UK will exit the European Union remained the main source of negativity, with campaigns suspended in the wake of a British MP’s murder.

Labour legislator Jo Cox was shot and killed in a daylight attack in her electorate in northern England.

Westpac strategist Imre Speizer says risk aversion rose during the London session but receded later in the New York session, allowing the Aussie to rebound.

“Brexit concerns will continue to restrain gains,” Speizer said.

“74.40 US cents (is) a likely cap on the day,” he added.

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