Following the Senate’s approval to the bill requiring regular reviews of Hong Kong's special financial status and bar exports of many crowd control munitions to the Hong Kong police, the United States (US) House of Representatives recently passed the Hong Kong Human Rights And Democracy Act. The same will now reach the White House for President’s signature before becoming the law.
FX implications
Risk aversion gains additional momentum with the news as China has severely condemned the US action in Hong Kong matter, which in turn increases pessimism surrounding the phase one trade deal between the two global superpowers. With this, the S&P 500 Futures weakens further to 3,108 (-0.32%) while AUD/USD takes rounds to 0.6800 by the early Asian session on Thursday.
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