US Trade Representative Katherine Tai told her Australian counterpart, Dan Tehan, on Wednesday, America is “closely monitoring” the ongoing Australia-Sino trade tensions and will support Canberra in addressing China’s state-led, non-market practices, the USTR said in a statement.

Key quotes

“The two ministers agreed to continue working to develop a digital trade policy that addresses the needs of workers and recognizes “the importance of collaboration among those with open, free, democratic systems.”

“ Tai conveyed that the United States stands with Australia to tackle this shared challenge and supports rules-based international trade to promote fair market-oriented trade practices.”

“She also told Tehan that the United States was committed to engaging with allies, including Australia, to address China’s policies that harm U.S. and Australian workers, businesses, and citizens.”

Market reaction 

AUD/USD is recovering some ground above 0.7350, shrugging off the above headlines. However, the further upside appears elusive amid looming covid concerns and poor Australian data.

The spot was last seen trading at 0.7352, down 0.06% on the day.