On Wednesday, China’s top leaders and policymakers are considering letting the Chinese Yuan fall to weather what is likely to be a sharp hike in tariffs, per Reuters. The yuan immediately dipped against the USD, along with currencies across Asia which are highly sensitive to Chinese demand.

Trump has said he plans to impose a 10% universal import tariff and a 60% tariff on Chinese imports into the United States.

Market reaction 

At the time of writing, the AUD/USD pair is trading 0.24% higher on the day to trade at 0.6386.