Responding to US President Joe Biden’s comments on Taiwan, China’s Foreign Ministry said on Monday that Beijing “deplores and firmly opposes this and has lodged stern representations.”

China’s Foreign Ministry added that “we reserve the right to take all necessary measures.”

American President Joe Biden said late Sunday, “US military would defend Taiwan in the event of an invasion by China.”

Market reaction

Renewed US-China tensions surrounding Taiwan are affecting the broader market sentiment amid pre-FOMC anxiety. AUD/USD is accelerating declines to near 0.6685, down 0.47% on the day, at the press time.