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.
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Trump hands over business empire to sons
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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.
The local currency may have enough upward momentum to carry it to US78¢, according to ANZ.
"The AUD looks set to continue to test the topside after surging ahead overnight," ANZ economists wrote. "We expect that the AUD could re-test 0.78 given it has lagged fundamentals." The Aussie last traded above US78¢ in April.
Westpac said it sees US75.25¢ as the next target for the Aussie.
Westpac senior market strategist Imre Speizer said Mr Trump's eagerly awaited press conference disappointed a market wanting information about fiscal policy, which led to the US dollar falling against the majors, including the Aussie.
"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 America 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."
"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."
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