China hopes US will stick with a 'one-China' principle – Reuters
The Chinese authorities said in a statement on Wednesday, they remain hopeful that the US will adhere to the ‘one-China’ principle, per Reuters.
Additional quotes
“Taiwan is the most sensitive issue in its relations with the US.”
“Hopes it deals with the Taiwan question with caution.”
Taiwan has always been a point of contention between the world’s two biggest economies while the strain escalates on the recent US’ intrusion in the South China Sea.
Market implications
The risk-off mood could worsen if the tensions mount, which would aid the recovery in the safe-haven US dollar.
AUD/USD is back in the red around 0.7735, having hit daily highs at 0.7764 on upbeat Australian CPI figures.
Meanwhile, the S&P 500 futures drop 0.10% to near 3,840 levels, as of writing.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
