“Treasury Secretary Janet Yellen had a 'frank and productive' discussion today with China's Ambassador,” said the US Treasury Department late Monday, early Tuesday in Asia, per Reuters.

The news also mentioned that US Treasury Secretary Yellen raised issues of concern while also conveying importance of the two countries working together.

Market implications

The news allows market sentiment to improve and underpin the risk-barometer AUD/USD pair’s run-up near 0.6680, up 0.08% intraday by the press time. It’s worth noting, however, that the cautious mood ahead of the Reserve Bank of Australia (RBA) Interest Rate Decision joins the US Independence Day holiday to limit the Aussie pair’s latest moves.

Also read: Reserve Bank of Australia Preview: A close call, with AUD/USD vulnerable