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LONDON: The Australian dollar hit the day's highs and the safe-haven Swiss franc dived against the euro after China cut reserve requirements for its banks.

Appetite for risky assets, already firm in early London trading thanks to strong data out of the United States, received a further boost after China unveiled its latest round of policy easing to support a struggling economy.

The Australian dollar  - its fortunes closely intertwined with the Chinese economy - gained 0.3% to $0.6837 and strengthened 0.7% versus the Swiss franc.

The New Zealand dollar also gained 0.6% versus the U.S. dollar.

The euro extended its rally against the Swiss franc, and was last up 0.4% at 1.0919 francs per euro.