US President Biden: US-Sino relations to improve ‘very shortly’

Dhwani Mehta FXStreet

US President Joe Biden said at the end of the Group of Seven summit in Japan on Sunday, he expected ties with China to improve “very shortly” after a spat over an alleged spy balloon earlier this year derailed relations, per Bloomberg.

Biden added, “the US’s move to shoot down a “silly balloon that was carrying two freight cars worth of spying equipment” changed the dynamic after his meeting with President Xi Jinping in November last year.”

In the contrary, the Wall Street Journal (WSJ) reported that China is banning major Chinese firms from buying from Micron Technology, citing its products pose a major national security risk. The Cyberspace Administration of China said its review of Micron products found “significant security risks” that would affect national security.

Responding to the Chinese ban on Micron Technology, US Commerce Department said that “we firmly oppose restrictions that have no basis in fact.”

Market reaction

Amidst mixed US-Sino headlines, AUD/USD is defending minor bids at around 0.6650, having retreated from intraday highs of 0.6688 reached in early Asia. The pair is up 0.08% on the day, at the press time.

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.

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