Citing Chinese state media, Reuters reported on Tuesday, China's Vice Foreign Minister and a senior US State Department official had a frank, constructive and fruitful communication on promoting Sino-US relations and properly managing differences.

“China stated its solemn position on Taiwan,” Reuters reported, adding that “both sides agreed to maintain communication.”

Market reaction

At the time of writing, AUD/USD is confined within a 15 pips narrow range above 0.6600, awaiting the Reserve Bank of Australia (RBA) interest rates decision.