The Australian dollar is only marginally higher, as falls on Wall Street weigh on the currency, after US President Donald Trump moved to impose new tariffs on China, raising fears of a trade war.

At 0635 AEDT on Thursday, the local currency was worth 78.83 US cents, up from 78.75 US cents on Wednesday.

The US government is pressing China to cut its trade surplus with the US by US$100 billion, the White House says.

Westpac head of NZ strategy Imre Speizer said a traders were in a risk averse mood overnight.

“US tariff proposals targeting China, a GDP prediction downgrade, and disappointing retail sales data partly explained the moves,” he said.

AAP

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