US Senator Graham, GOP Senators introduce China sanctions bill over virus – BBG

Bloomberg has explained that Republican Senator Lindsey Graham introduced a measure that would "authorize the president to impose sanctions on China if Beijing 'fails to cooperate and provide a full accounting of the events leading up to the outbreak' of the coronavirus."

Key notes

• Bill would require the president to certify within 60 days that China has provided full accounting to any Covid-19 investigation led by the US, its allies or UN affiliate, and closed wet markets that have potential to expose humans to health risks.
• Legislation also calls for release of pro-democracy protestors in Hong Kong.
• Bill co-sponsored by Republican Senators Thom Tillis, Cindy Hyde-Smith.

Market implications

The focus here remains with trade wars. Chinese state media has reported that unidentified advisers close to the talks have apparently suggested that Chinese officials will revive the possibility of invalidating the trade pact and negotiate a new one to tilt the scales more to the Chinese side. US President Donald Trump said, "I'm not interested. We signed a deal. I had heard that too, they'd like to reopen the trade talk, to make it a better deal for them."

• AUD/USD directionless, in a chop around the 0.65 level

• USD/JPY meeting strong resistance, DXY back below 100 level