In a keynote speech to a virtual BRICS Business Forum on Wednesday, Chinese President Xi Jinping vowed to meet economic targets for the year despite the country battling with the covid outbreaks and a weak housing market.

Key quotes

China will “strengthen macro-policy adjustment and adopt more effective measures to strive to meet the social and economic development targets for 2022 and minimize the impacts of Covid-19.”

“China’s approach to fighting Covid not only protected people’s lives and health, but also stabilized the fundamentals of economic and social development as much as possible.”

Market reaction

Despite the optimism from the Chinese leader, AUD/USD remains unimpressed, as recession fears overwhelm the market. The pair was last seen trading down 0.56% on the day at 0.6887.