US President Joe Biden and his Chinese counterpart Xi Jinping are likely to hold their first virtual meeting as soon as next week, Reuters reported, citing a person with knowledge of the matter.

Key takeaways

“Stakes for the meeting are high – Washington and Beijing have been sparring on issues from the origins of the pandemic to China's expanding nuclear arsenal – but Biden's team has so far set low expectations for specific outcomes.”

“Experts believe the two sides may work toward an agreement to relax curbs on visas for each other's journalists and have also said a deal to reopen consulates in Chengdu and Houston shuttered in a diplomatic dispute in 2020 could help improve the mood.”

Market reaction

AUD/USD is holding the lower ground near 0.7370, unimpressed by the above piece of news while the S&P 500 futures drop 0.22% on the day, in anticipation of the US inflation data.