Sources: Trump administration to mull expansion of China investment ban - Reuters

Reuters quotes two anonymous people familiar with the matter while saying, “Trump administration officials are expected to discuss a proposed expansion of an executive order banning US investment in alleged Chinese military companies at a Thursday afternoon meeting.”

The early Friday news further said, at the meeting, officials from the Defense, State and Treasury Departments will consider, among other things, proposed changes to the November directive, which has spurred confusion among investors and firms seeking to comply.

It was mentioned that a draft amendment that would direct US investors to completely divest their positions in the blacklisted companies by November 11, 2021, could also be discussed in the stated meeting, per reports.

Market reaction

The news highlights the US-China tension and drags AUD/USD to an intraday low of 0.7754 even as US stimulus hopes favor risk-tone. Also challenging the aussie pair could be the news of a three-day lockdown in Greater Brisbane.

Read: AUD/USD eyes 0.7800 as bulls fight amid upbeat market mood