Australian dollar dodges Trump's latest trade war salvo

SYDNEY, Feb 11 (Reuters) - The Australian dollar was surprisingly resilient on Tuesday, helped by a rebound in global risk appetite and higher commodity prices as investors took new tariffs on steel and aluminium from U.S. President Donald Trump in their stride.

The Aussie AUD=D3 was flat at $0.6272, having risen from a one-week low of $0.6230 overnight to end the day 0.1% higher. A rally in Wall Street underpinned the currency, while iron ore prices climbed 0.8%, copper rose 2.6% and aluminium gained 1.1%.

It now faces resistance at Friday's high of 63 cents and January's $0.6330 peak.

The kiwi dollar NZD=D3 has had less luck, having fallen for three straight sessions. It was off 0.1% to $0.5635 while resistance is at last week's high of $0.5702.

That helped the Aussie climb to an 11-week top of NZ$1.1127 AUDNZD=R.

Traders were awaiting a testimony from Federal Reserve Chair Jerome Powell later in the day and a reading on U.S. inflation due on Wednesday for clues on the outlook for further policy easing.

As expected, Trump on Monday signed proclamations raising the U.S. tariff rate on steel and aluminium to 25% from 10% previously, although the new duties won't come into effect until March 4.

"With the 25% tariff announcement on steel and aluminum lacking any trigger for broad portfolio derisking and USD strength, the ability of risky markets to absorb the news and maintain a steady bid is telling," said Chris Weston, head of research at Pepperstone.

"What is going down just isn't troubling risk and perhaps this is the sign that Trump is playing the negotiator."

Trump has said there will be no exemptions from the new tariffs although Australian Prime Minister Anthony Albanese said Washington will consider exempting Australia given the U.S. runs a trade surplus with it.

Local data showed Australian consumer sentiment remained in the doldrums in February, a result that should reassure the Reserve Bank of Australia that consumers were not rushing to spend and stoke inflation.

Business conditions softened in January, although confidence got a boost amid hopes for a near-term reduction in borrowing costs.

Futures imply a 95% probability that the RBA will cut its 4.35% cash rate by 25 basis points next Tuesday, the first reduction in four years.