Aussie Falls 50 points as China Halts Economic Dialogue with Australia

China in a largely symbolic move to signal its increasing tension with Australia, announced today to suspend a regular economic dialogue with Canberra and blames the ‘Cold War Mindset’ of Australian officials.

The National Development and Reform Commission stated that it was indefinitely halting all activities under the China-Australia Strategic Economic Dialogue. The last Economic Dialogue was last held in September 2017.

According to ZERO Markets’ Metatrader, 4 platforms, the Australian dollar dropped sharply by 0.6% from highs near 0.7757 U.S. cents to 77 U.S. cents before gradually recovering to near 0.7727 U.S. cents. There was no immediate response from the Australian Department of Foreign Affairs and Trade.

This is the latest retaliation from China which has further deteriorated the relations between the two nations last a list of tensions. Last month, Australia has canceled China’s Belt and Road Initiative with Victoria state. Beijing has continued to curb imports from Australia in response to Canberra’s decision to ban Huawei Technologies Co., and Australia seeking to investigate the origins of the coronavirus.

The further move by Australia could further stoke tensions with Beijing. Australia is reviewing whether to force a Chinese Company to sell a lease to a strategically important port used by US Marines. 

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