United States Trade Representative (USTR) Katherine Tai said in a Bloomberg TV interview on Tuesday, US is looking to realign its trade relationship with China rather than seek a divorce.

Key quotes

“The Biden administration’s policy was focused instead on “realignment in the global economy.”

“That includes addressing the lack of visibility, accountability and diversity in supply chains that has led to disruptions in recent years.”

“I would focus really on the kinds of changes that we’re trying to bring, which are really not about stopping trade or trade divorce.”

“They’re really about bringing reform and a more strategic approach to trade.”

Market reaction

AUD/USD was last seen trading at 0.7636, up 1.27% on the day.

• AUD/USD explodes to test 0.7650 on hawkish RBA, bull pennant