Amid simmering trade tensions between the United States (US) and China, the Chinese Commerce Ministry announced on Monday that the country prohibits general atomics aeronautical systems of the US from engaging in import and export activities related to China.

This comes after US Trade Representative (USTR) Katherine Tai announced last Tuesday that "further action required beyond tariff changes to address China's unfair policies."

Market reaction

AUD/USD has paused its upside near 0.7010 on the above headlines, still up 0.19% on the day.