The Australian dollar is higher, as the mood on financial markets further improves on the back of easing worries over a possible trade war sparked by the imposion of heavy tariffs by the US on metals imports.

At 0635 AEDT on Wednesday, the local currency was worth 78.23 US cents, up from 77.74 US cents on Tuesday.

A Bloomberg report quoting a close ally of Donald Trump saying the president was open to changes to his proposed tariffs on steel and aluminum, was cited by traders as the reason for a jump in US stocks.

AAP

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