China's top diplomat Wang Yi said on Friday that the US and China relations are facing challenges and difficulties.

“I urge the US to stop suppression, decoupling is wrong,” Wang added.

Market reaction

AUD/USD is under pressure below 0.6700, as the US Dollar stages a comeback ahead of the US PCE inflation data. Simmering US-Sino tensions are also weighing on the Aussie pair. At the time of writing, the major is trading 0.19% lower on the day at 0.6693.