The Australian dollar has hit a fresh two-month high against the US greenback, which fell sharply after comments from US President-elect Donald Trump.

The local currency was trading at around 75.57 US cents at 1000 AEDT, its highest mark since November rising after Trump bemoaned the strength of the US dollar.

In an interview with The Wall Street Journal, Trump said the US dollar's value is too high in part because China holds down its own currency.

"Our companies can't compete with them now because our currency is too strong. And it's killing us," Trump said.

"Our companies can't compete with them now because our currency is too strong. And it's killing us," Trump told the Wall Street Journal. AP

Fredrik Nerbrand, global head of asset allocation at HSBC in London, said US policy will continue to be a dominant theme.

"The dollar is the guiding light at this point, and all eyes are on the shape US policy will take," said Nerbrand.

Click to reload

"I would put today's dollar weakness down to noise rather than a structural shift. If Trump wants to become as growth-generative as he's planning to be and you don't have the same fiscal push coming from the rest of the world, then it's a question of where does the capital flow to. The dollar is the tallest pygmy."

Sterling rose nearly 3 per cent against the dollar, touching its highest in nearly two weeks and on pace for its biggest gain in more than eight years.

The Australian dollar has risen to be close to US80c. Rob Homer

Already up more than 1 per cent on unexpectedly high December inflation data, the pound spiked higher after Prime Minister Theresa May pledged to hold a parliamentary vote on whatever deal Britain eventually reaches to leave the European Union.

"The key event was May's speech," Vassili Serebriakov, FX strategist at Credit Agricole said.

"I think it was a case of sell the rumour buy the fact - buy sterling on the speech after selling on the rhetoric, which gave some concessions to the soft Brexit camp and prompted a relief rally in sterling."

Wires