China’s Foreign Minister Wang Yi said on Friday that the relations between Beijing and Canberra face challenges and opportunities currently.

Wang added that “China is willing to recalibrate relations in a spirit of mutual respect.”

Earlier in the day, chatters were doing the rounds that China may be preparing to reverse its unofficial ban on Australian coal imports in August or September.

Market reaction

AUD/USD is catching a fresh bid on expectations of a thaw in the China-Australia conflict. The spot is now trading at 0.6755, up 0.13% on the day.