Suchiloma Sutta translation
Here is an alternative translation up on Sutta Central: https://suttacentral.net/en/snp2.5

However, the sentence you are looking for is translated as so:


  Friend, I am not afraid of you, but your touch is evil.


The word "evil" here translates Pali pāpako - bad, malignant, evil, wrong, sinful.

I suppose the meaning is that, although Enlightened One is not afraid to come in contact with demonic influences, even for Buddha the close contact with them is not beneficial. As poisonous food may upset the stomach, so poisonous thoughts may upset the mind.