China embassy in US: US is stirring up tension, inciting confrontation in S.China Sea

Ross J Burland FXStreet

The China Embassy in the US is stirring up the tension, inciting confrontation in S.China Sea.

Key notes

US accusation on the S.China Sea completely unjustified, China firmly opposed.

In a statement on Monday, Mr Pompeo denounced China's claims on the disputed Spratly Islands in the South China Sea, saying Beijing had "no legal grounds to unilaterally impose its will on the region".

"Any [People's Republic of China] action to harass other states' fishing or hydrocarbon development in these waters - or to carry out such activities unilaterally - is unlawful," he said.

"The world will not allow Beijing to treat the South China Sea as its maritime empire."

Market implications

AUD is a proxy to the wear of words and is also trading in tandem to the US benchmarks performances.

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