China's top diplomat to US: Beijing does not want escalation following mutual consulate closures

Early Wednesday morning in Asia, Reuters quotes China’s Ambassador to the US, Cui Tiankai who tries to placate the recently renewed tension among the world’s top two economies.

Key quotes

I don’t think a new Cold War would serve anybody’s interest.

China does not wish to see tensions between Beijing and Washington escalate further following tit-for-tat consulate closures over the past weeks.

China is ready to negotiate with other countries for peaceful solution to disputes in South China Sea.

FX implications

The news failed to offer any major positive support to the markets as traders are more concerned with the US stimulus talks. That said, the risk barometer remains on the front-foot near 0.7160 by the press time.