Australian, NZ Dollars Slide On Trade Talk Worries

The Australian and New Zealand dollars fell against their major counterparts in the Asian session on Wednesday amid risk aversion, as U.S. President Donald Trump threatened to raise tariffs on Chinese goods if 'phase one' deal is not reached soon.

Trump said that he would "just raise the tariffs even higher" if a deal cannot be reached with China.

Trump's remarks raised further uncertainty over forging a trade deal with Beijing.

News that the U.S. Senate passed legislation supporting protesters in Hong Kong also weighed on the markets. China has condemned the U.S. Senate measure and threatened to retaliate over the bill.

Investors await minutes from the Federal Reserve's October policy meeting due later today. At the meeting, the Fed had cut rates and suggested a
'pause' on rate cuts for the time being.

The aussie declined to 0.6810 against the greenback, 73.80 against the yen and 1.6259 against the euro, from its early highs of 0.6831, 74.16 and 1.6214, respectively. The next possible support for the aussie is seen around 0.66 against the greenback, 72.5 against the yen and 1.65 against the euro.

The kiwi eased to 69.50 against the yen, 0.6414 against the greenback and 1.7263 against the euro, off its early high of 69.87, more than a 2-week high of 0.6436 and a 6-day high of 1.7213, respectively. The kiwi may challenge support around 66.00 against the yen, 0.63 against the greenback and 1.75 against the euro.

The kiwi retreated to 1.0624 against the aussie, from an early 6-day high of 1.0608. Next immediate support for the kiwi is likely seen around the 1.08 level.

Looking ahead, Canada CPI for October and the Fed minutes from the October meeting are set for release in the New York session.