SYDNEY, Oct 9 (Reuters) - The Australian and New Zealand dollars were trapped in tight ranges on Wednesday as market sentiment turned cautious amid renewed worries about souring U.S.-China relations and the impact on the world economy.
The Australian dollar AUD=D4 was slightly higher at $0.6736 at 0127 GMT. The Aussie faces near-term chart resistance at $0.6780, a breach above could take it to $0.6800 - a level it has failed to sustain since late September.
The New Zealand dollar NZD=D4 was up a shade at $0.6310. It has traded in a $0.6327 and $0.6204 band for the past three weeks.
The small gains in the antipodean currencies were led by a weakening greenback, as risk sentiment fell after the U.S. State Department imposed visa restrictions on Chinese government and Communist Party officials it believes responsible for the detention or abuse of Muslim minorities in Xinjiang province.
Separately, the U.S. Commerce Department blacklisted Chinese companies over Beijing's treatment of predominantly Muslim ethnic minorities, and President Donald Trump said a quick trade deal was unlikely.
The latest developments come at a critical juncture in the 15-month trade war between Washington and Beijing, which has roiled market sentiment, hit manufacturing activity and business confidence around the world.
Top-level talks are scheduled to resume on Thursday and Friday, when Chinese Vice Premier Liu He meets with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin in Washington.
News from Australia was gloomy too, with a closely-watched measure of consumer sentiment hitting a four-year low in October despite three rate cuts this year and early signs of revival in the country's property market.
The Reserve Bank of Australia (RBA) cut interest rates to a record low 0.75% last week in a bid to revive employment, consumer spending and inflation.
"This result will be of some concern to the monetary authorities," Westpac chief economist Bill Evans wrote in a note.
"Consumers are looking behind the reason for the rate cut and, arguably, the absolute level of rates and getting nervous."
Growth in Australia's A$1.95 trillion economy slowed to decade lows in the June quarter, while initial data for the third quarter indicates the slowdown has extended.
New Zealand government bonds
0#NZTSY= eased, sending yields about 1.5 basis points higher.Australian government bond futures rose, with the three-year bond contract YTTc1 and the 10-year contract YTCc1 up 1 tick each at 99.435 and 99.129 respectively.
