The Australian dollar continues to slide Thursday, buying 72.11 US cents, slightly down from 72.16 US cents on Tuesday.

The local currency reversed early losses on Tuesday on a media report China’s top trade war negotiator is heading to the United States to prepare for talks between the two countries’ leaders.

The Sino-US trade war has been a major overhang for financial markets this year as investors fear global protectionism will hurt China’s economy as well as world growth.

Tuesday’s source-based report in Hong Kong’s South China Morning Post was perceived as positive by market players and lifted the Australian dollar from the day’s low.

The currency, often played as a liquid proxy for Chinese assets, was last up 0.5 per cent at 72.13 US cents.

The Aussie has stumbled about eight per cent so far in 2018.

“This is good news, so we have seen a broad improvement in sentiment across market,” Rodrigo Catril, Sydney-based senior forex strategist at National Australia Bank, told Reuters.

“But there is still some caution. We obviously need more detail on it. This should also be taken in the context of new retaliatory measures that the US is considering against China.”

Earlier, the Wall Street Journal reported, citing sources, the Trump administration is broadening its China trade battle beyond tariffs with a plan to use export controls, indictments and other tools to counter the theft of intellectual property.

Earlier in the day, a survey showed that Australia’s business conditions and confidence declined in October, driven by a slowdown in firms’ intention to hire more workers.

Investors are next focused on wage data due on Wednesday that is likely to show an uptick in the third quarter.