The Australian dollar surged around one US cent amid renewed uncertainty about Donald Trump's policies following his first press conference as US President-elect.
After trading around 73.75 US cents before Trump spoke, the dollar soared to as high as 74.72 US cents during his speech - its highest mark since mid-December - as the US dollar suffered against major currencies. At about 7.55am AEDT, the local currency was up one per cent at 74.42 US cents.
Global financial markets were roiled as Trump held his first news conference since winning the November 8 presidential election. Investors hoping for comments on plans for tax reform and infrastructure spending were disappointed as most of the questioning focused on this week's reports of Russian efforts to influence the election and potential links between Russia and Trump.
"It was not as market friendly as the pro-growth acceptance speech he gave in November," Mr Speizer said in a note.
"Trump made a few references to "making American great again" but if you wanted more detail on infrastructure spending plans, corporate tax reform, a tax repatriation holiday, and the potential for border adjusted taxation, then you would have been disappointed."
"The market didn't get what it wanted –- details on stimulus to be provided," said Bipan Rai, senior foreign-exchange and macro strategist at Canadian Imperial Bank of Commerce. "For now, today's pre-Trump trades are being unwound."
"I think the markets were hoping for more, so they were disappointed," Societe Generale analyst Robin Bhar said."If (Trump) isn't going to bolster growth through fiscal spending, then that's got to be slightly disappointing compared to the hopes that were being built up post his election win," he added. "It's still hope over reality at the moment."
More to come
Wires