Taiwan's Foreign Minister said in a statement on Tuesday, China's military exercises near the country have hindered one of the busiest routes shipping routes in the world.

Additional quotes

The Chinese drills are preparation for an invasion of Taiwan.

Drills a gross violation of international law.

Taiwan has the right to maintain relationships with other countries.

Taiwan has the right to participate in the international community.

Chin is targeting Taiwan at present but its ambitions go beyond Taiwan.

These comments come after the Eastern Theater Command of China's People's Liberation Army said on social media Weibo that it is continuing drills in the seas and skies around Taiwan on Monday.

Market reaction

At the time of writing, AUD/USD is fluctuating between gains and losses below 0.7000 amid a mixed market mood, as all eyes remain on Wednesday’s US inflation report.