IYCMI - Pelosi will visit Taiwan (market casts nervous eyes at AUD)

China's one-party state is stringently objecting to an elected representative from one democracy paying a visit to another democracy! That is, US House Speaker Nancy Pelosi will visit Taiwan.

Adam had a detailed run-down here for more:

• Pelosi to visit: What's the Taiwan trade?

I'd only add that while China's Communist Party leaders are furious the response is usually directed at allies of the US, rather than the US itself. China is too weak to target the US but they have shown many times they are prepared to bully smaller allies, such as Australia. China has, effectively, banned imports of goods from Australia in recent years when tensions with the US have risen. Watch for further such responses in the days ahead. So far China has left imports of Australia's #1 product, iron ore, untouched. If that comes under the spotlight the AUD AUD The Australian dollar (AUD) is the official currency of Australia, which is also used in Christmas Island, Cocos (Keeling) Islands, Norfolk Island, as well as independent pacific states.Introduced in 1966, the AUD is currently the fifth most traded currency in the world, behind only the US dollar, euro, Japanese yen, and British pound.The currency is very important to forex markets and is routinely used as a carry trade against other majors.The Reserve Bank of Australia (RBA) is the central bank The Australian dollar (AUD) is the official currency of Australia, which is also used in Christmas Island, Cocos (Keeling) Islands, Norfolk Island, as well as independent pacific states.Introduced in 1966, the AUD is currently the fifth most traded currency in the world, behind only the US dollar, euro, Japanese yen, and British pound.The currency is very important to forex markets and is routinely used as a carry trade against other majors.The Reserve Bank of Australia (RBA) is the central bank Read this Term will suffer.