The Australian dollar skidded on Wednesday after three straight winning sessions on reports Washington was considering slapping higher import tariffs on Chinese goods while the New Zealand dollar dipped on disappointing jobs data. The Australian dollar, a liquid proxy for China plays, was last down 0.2 percent at $0.7414 from Tuesday's high of $0.7441. The Aussie fell to a 1-1/2 year trough of $0.7318 earlier this month and has since been confined to a $0.7318-$0.7464 band amid worries about the impact on global growth and its own economy from a full-blown trade war.
Across the Tasman Sea, the New Zealand dollar was off 0.2 percent at $0.6801 for its second straight day of losses. New Zealand government bonds fell, sending yields 2.5 basis points higher at the long-end of the curve. Australian government bond futures eased too, with the three-year bond contract down 3 ticks at 97.860. The 10-year contract slipped 5.5 ticks to 97.290.
US President Donald Trump looked to revive the confrontation on trade as reports emerged he would propose tariffs of 25 percent, instead of 10 percent, on $200 billion in Chinese imports. The announcement could come later in the day.
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