Citing excerpts released by the US Treasury, Reuters reported that Treasury Secretary Janet Yellen will say in her speech later on Thursday that the US seeks a 'constructive and fair' economic relationship with China.

Additional takeaways

“US will communicate clearly concerns about China's behavior, secure its national security interests and protect human rights.”

“US will not compromise on national security concerns, even when they force trade-offs with economic interests.”

“US targeted actions against China are driven by security concerns, not meant to gain competitive economic advantage.”

“Calls on China to follow through on promises to work with the US on the macro economy, climate and debt distress.”

Market reaction

Yellen’s staunch remarks seem to be weighing on the Chinese proxy, the Australian Dollar. The AUD/USD pair is retreating from daily highs of 0.6726 to trade at 0.6700, losing 0.19% on the day, as of writing.