“We intend to compete completely with China but we are not seeking conflict, as that has been the case so far,” said US President Joe Biden during a PBS interview late Wednesday.

US President Biden also confirmed that relations with China have not taken a big hit.

Market sentiment improves a bit

Comments from US President Biden join the recent statements from US Treasury Secretary Janet Yellen to tame the fears emanating from Sino-American ties. The same appears to have put a floor under the risk barometer AUD/USD pair around 0.6920, following the pair’s reversal from the weekly high the previous day.

Also read: AUD/USD declines towards 0.6900 as Fed policymakers sound hawkish on rate guidance