The Australian dollar has charged higher despite traders turning cautious a day before the Brexit referendum.

At 0700 AEST on Thursday, the local unit was trading at 75.00 US cents, up from 74.86 cents on Wednesday.

JP Morgan foreign exchange strategist Paul Meggyesi says there’s been a substantial reversal in Brexit risk in the past few days, with markets now expecting the UK to remain in the European Union.

“However, opinion polls suggest the outcome is too close to call,” he said.

Meggyesi said the next 48 hours could still prove extremely volatile if that collective judgement proves incorrect.

“We find out Friday morning one way or another,” he said.

AAP

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