Despite Donald Trump's announcement that his government will recognize Jerusalem as the capital of Israel over Palestinian objections, none of America's close allies are following the move.  Especially Australia.

"We will not be taking steps to move our embassy, it will continue to offer diplomatic representation in Tel Aviv," said Foreign Minister Julie Bishop to reporters in Canberra today.  "The Australian government is committed to a two-state solution whereby the Israeli people and the Palestinian people can live in peace, side by side within internationally recognized boundaries," she added, "That remains our foreign policy objective in relation to the issues in Israel with the Israeli state and the Palestinian authority."

Labor Senator Penny Wong said the opposition is also committed to the two-state solution.

"It is clear that the unilateral declaration that is being proposed, the unilateral action that is being proposed by the President, is not helpful to the peace process," she said.

The state of Victoria will keep its business office in Tel Aviv, because that's where the action is:  "From a tech point of view, medical research, investment, commerce, Tel Aviv really is the capital," Premier Daniel Andrews told the Nine Network.

Across our region, reaction to Trump has been mostly negative.

"I have no doubt that this will make things difficult," said New Zealand Prime Minister Jacinda Ardern.  "Jerusalem and issues around religious sites need to be resolved within the context of establishing that two-state solution."

Indonesian Foreign Minister Retno Marsudi actually donned a Palestinian Keffiyeh scarf to blast Trump:  "Democracy means respecting the international law, (and) the recognition does not respect various UN Security Council resolutions," he said at a Democracy forum in the Jakarta suburbs.  "As a democratic country, the US should know what democracy means." 

Malaysia issued a sharply-worded statement saying Trump "must reconsider" his decision because it will "have grave repercussions" for Mideast stability and "inflame sentiments, making efforts to combat terrorism all the more difficult".

Singapore said it would stick with the two-state solution. 

Japan refused to comment one way of the other, but the current holder of the UN Security Council's rotating presidency will be unlikely to defend its ally in Friday's Security Council session.  Bolivia, Britain, Egypt, France, Italy, Senegal, Sweden, and Uruguay all urgently requested the Council discuss Trump's decision.

"It's a threat not just to the peace process, but also it's a threat to international peace and security," said Bolivian UN Ambassador Sacha Sergio Llorenty Soliz.