Chinese diplomat Wang Yi: US should not try and change China

• Chinese diplomat Wang Yi: Opening up and integration represent the right direction.
• President Trump said he will not accept a “bad deal” in trade talks with China.

Chinese diplomat Wang Yi is crossing the wires, saying that it was never China's intention to change the US, and the US should not try to change China.

Additional comments:

• We will not close the door to the Chinese economy, it will only open wider
• Neither the US nor China can move ahead without the other.
• Opening up and integration represent the right direction.
• Tariffs have reduced the competitiveness of US firms and farmers while manufacturers face mounting pressures.
• The US-China trade war has inflicted losses on both sides.
• Relations between the US and China are at a crossroads.
• US and China need to take their bilateral relationship forward with wisdom and conviction.
• For the US to revert to a containment policy towards China would be the wrong idea that could not possibly work.

FX implications:

Overnight, President Trump said he will not accept a “bad deal” in trade talks with China - Comments that followed an increased optimism over a trade agreement of late where talks look set to continue in the next few weeks which is supportive to such currencies as AUD.