Pres. Trump: US certainly does maintain a policy option of complete decoupling from China

US President Donald Trump took to Twitter late Thursday and threatened to cut ties with China yet again.

Trump tweeted out: “It was not Ambassador Lighthizer’s fault (yesterday in Committee) in that perhaps I didn’t make myself clear, but the U.S. certainly does maintain a policy option, under various conditions, of a complete decoupling from China. Thank you!”

This comes a day after US Trade Representative Robert Lighthizer told Congress he did not see decoupling the US and Chinese economies as a viable option.

Earlier today, US Assistant Secretary Stilwell commented on the talks between Mike Pompeo and China's earlier this week. He said that Beijing’s attitude in talks in Hawaii cannot be described as having been forthcoming.

Both countries are at loggerheads over several issues, with China’s coronavirus mishandling and Hong Kong’s security law at the center of the souring diplomatic ties. Markets remain worried if this jeopardizes the phase one trade agreement.

Market reaction

The risk sentiment remains lifted in Asia so far, despite a mixed close on Wall Street overnight.

AUD/USD trades better bid just above the 0.6850 level.