The Australian dollar is slightly higher, as falls in US markets and worries over a possible trade war place a drag on any gains the currency might make.

At 0635 AEDT on Thursday, the local currency was worth 78.12 US cents, up from 78.01 US cents on Wednesday.

BK Asset Management managing director of FX strategy Boris Schlossberg said a wary calm persists on financial markets ahead of key US employment data this week and a final outcome on US trade tariffs.

AAP

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