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Chinese President Xi Jinping crossed wires, via Xinhua reported by Reuters, during the weekend. The dragon leader shrugged off risks from external catalysts while citing economic strength.

Key quotes

The basic characteristics of China’s economy with sufficient potential, great resilience, strong vitality, large space for manoeuvre and many policy instruments have not changed.

We must seek our development in a more unstable and uncertain world.

China has strong manufacturing capacity, very large domestic markets and huge investment potentials, Xi said.

Xi reaffirmed a “dual circulation” strategy that would help steer the economy towards greater self-reliance, as U.S. hostility and a global pandemic increase external risks.

The great rejuvenation of the Chinese nation can never be achieved easily with the beating of gongs and drums.

FX implications

The news seems to have played the role in helping AUD/USD to regain 0.7300 at the week’s start. However, broad challenges to risk catalysts seem to weigh on the risk-on mood.

Read: AUD/USD: Challenges to risk probe the bulls attacking 0.7300