The Australian dollar has outperformed all major currencies as Brexit jitters momentarily fade and commodities bounce.

At 0700 AEST on Thursday, the local unit was trading at 75.21 US cents, up from 74.41 cents on Wednesday.

“Markets stabilised overnight, following the nervous session yesterday afternoon,” Westpac strategist Imre Speizer says.

Speizer said risk sentiment is fluctuating daily but is currently positive, and tipped the Aussie to reach 75.45 US cents on Thursday.

Global oil prices have staged a recovery while Wall Street has risen after the US Federal Reserve appeared cautious in its June meeting minutes, BK Asset Management managing director of FX strategy Kathy Lien said.

“Policymakers felt that it was prudent to wait for more data before raising interest rates,” she said.

“And we are certain that the ‘data’ they’ve gotten in the form of Brexit will be enough to turn some hawks into doves.”

AAP

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