“The risk of a recession in the United States was still very low,” said US President Joe Biden on Monday upon his return to the White House after spending the weekend at the Camp David presidential retreat.

US President Biden also turned down the negative impact of the latest Chinese balloon shooting by the US on the Sino-American ties.

It should be noted that US President Biden will deliver the State of the Union (SOTU) address on Tuesday and is likely to call for maximum tax on billionaires and promote US-made goods and materials.

Market implications

The news should have ideally helped the market sentiment but the early hours of the Asian session fail to portray the impact. That said, the risk barometer AUD/USD pair remains pressured ahead of the Reserve Bank of Australia (RBA) monetary policy meeting.

Also read: AUD/USD slumps below the 50-day EMA to the 0.6880 area