The Australian dollar has firmed as global financial markets adjust to Donald Trump’s surprise US presidential victory.

At 0700 AEDT on Thursday, the local unit was trading at 76.48 US cents, up from 76.19 cents on Wednesday.

Trump’s remarkable win initially damaged risk appetite sending US stock market futures tumbling and driving risk currencies like the Australian dollar plummeting on Wednesday.

But global risk appetite did an astonishing turnaround overnight with Wall Street rising one per cent after an initial steep sell-off, Westpac senior market strategist Imre Speizer.

European stocks also rose more than one per cent with Germany’s DAX closing1.6 per cent higher.,

Speizer said the markets’ uncertainty about a Trump presidency had eased giving risk currencies, like the Australian dollar, support.

“Markets appeared to reassess the economic outlook under Trump, towards one of higher growth,” he said.

AAP

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