Late Thursday, US President Joe Biden and his Russian counterpart Vladimir Putin held a telephonic conversation over the Russia- Ukraine tussles.

“U.S. President Joe Biden and his Russian counterpart Vladimir Putin on Thursday warned each other that an escalation of tensions over Ukraine could rupture relations between the two countries, U.S. and Russian officials said,” per Reuters.

The news also quotes White House press secretary Jen Psaki’s statement saying, “He (Biden) made clear that the United States and its allies and partners will respond decisively if Russia further invades Ukraine.”

On the other hand, Kremlin said, per the news, “Putin told Biden that any sanctions could rupture ties between Russia and the United States and would be a big mistake.”

It was also mentioned in the news that, “But Kremlin aide Yuri Ushakov said Russia was satisfied with their phone conversation, which he said centered on security guarantees that Moscow wants from the West amid a build-up of Russian forces close to the Ukrainian border.”

FX implications

Although the news hints at further challenges to the market sentiment, the year-end liquidity crunch and New Year’s Eve in major Asia-Pacific nations restrict the reaction to the news update. That said, the risk barometer pair AUD/USD remains pressured 0.7245 by the press time.

Read: AUD/USD: Gravestone Doji at monthly top probe bulls below 0.7300, China PMI eyed