Comments by the Chinese foreign ministry
- Current situation is something China does not want to see
- Urges the US to revoke its 'wrong' decision
- Calls for US to create necessary conditions for return of bilateral relations
Some accompanying remarks to their decision to call for the US to shut its consulate in Chengdu. Risk trades saw a slight dip on the headline but barring any further escalation by the US, the narrative here will quickly grow a little stale.
For now, it is still creating some sense of nervousness following the selloff in US stocks overnight - not to mention the decline in Chinese equities today.
AUD/USD is down to session lows of 0.7083, and testing waters under its 100-hour moving average at 0.7090. Keep below that and the near-term bias turns more neutral.
