White House: US President Biden and China's Xi speak by phone for first time since February

Early Friday, Reuters came out with the news, quoting the White House, of the first phone call between US President Joe Biden and his Chinese counterpart Xi Jinping.

The news mentioned that Thursday’s talks were, “Ending a nearly seven-month gap in direct communication between the leaders of the world's two largest economies.”

Additional quotes (from Reuters)

Biden-Xi call a test of whether direct leader-level engagement can move relations forward.

Lower-level talks with China have not been fruitful.

Biden call with Xi not intended to discuss "costs" for Beijing's lack of cooperation.

Biden knows history will judge him and Xi by how they manage US-China competition and he takes this seriously.

US will not trade away progress on transnational issues with china for something that's not in interests of American people.

US not seeking specific outcomes or agreements from Biden-Xi call, but broad, strategic discussion about how to manage the competition.

Biden and Xi had ‘a broad, strategic discussion’

Discussed areas where our interests converge, and areas where our interests, values, and perspectives diverge.

Biden underscored the United States' enduring interest in peace, stability, and prosperity in the Indo-Pacific

Biden-Xi call is a test of whether direct leader-level engagement can move relations forward.

Discussed the responsibility of both nations to ensure competition does not veer into conflict.

President Biden underscored the United States' enduring interest in peace, stability, and prosperity in the Indo-Pacific and the world and the two leaders discussed the responsibility of both nations to ensure competition does not veer into conflict.

Market implications

Following the sentiment-positive news, prices of gold and AUD/USD refresh intraday tops around $1,797 and 0.7380.

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