Taiwan's Foreign Ministry: Chinese drills are preparation for an invasion of Taiwan

Taiwan's Foreign Minister said in a statement on Tuesday that they are worried that China may invade it.

Additional quotes

Drills are a gross violation of international law.

China's military exercises near the country have hindered one of the busiest routes shipping routes in the world.

Taiwan has the right to maintain relationships with other countries.

Taiwan has the right to participate in the international community.

Chin is targeting Taiwan at present but its ambitions go beyond Taiwan.

To prepare for an invasion of Taiwan, China is using drills.

These comments come after the Eastern Theater Command of China's People's Liberation Army said on social media Weibo that it is continuing drills in the seas and skies around Taiwan on Monday.

Meanwhile, around 20 Chinese and Taiwanese warships stayed close to Taiwan strait median line on Tuesday morning, with some Chinese ships briefly attempting to cross the line, Reuters reports, citing a source who briefed them on the matter.

Market reaction

At the time of writing, AUD/USD is fluctuating between gains and losses below 0.7000 amid a mixed market mood, as all eyes remain on Wednesday’s US inflation report.