China arrests Aussie tv anchor, accuses US of creating “instability” around the world

In a fresh challenge to the upbeat market sentiment, Bloomberg came out with the news suggesting Australian television anchor Cheng Lei’s, formerly a news anchor for Chinese state television, formal arrest in China.

“Chinese authorities have advised that Cheng was ‘arrested on suspicion of illegally supplying state secrets overseas,’ the statement said,” per the news.

Additional details suggest that Australia has raised its serious concerns about Ms. Cheng’s detention regularly at senior levels, including about her welfare and conditions of detention.

In different news, the South China Morning Post (SCMP) mentioned Chinese Diplomat Cui Tiankai’s CNN interview where he blames Washington for restricting the free flow of technology and information between the two nations, per the news.

FX implications

Although both the news should ideally weigh on risks, global markets are currently happy with the increased odds of the US covid relief package. As a result, AUD/USD picks up bids to 0.7678, up 0.06% intraday by press time.