AUD/JPY surges to near 94.50 as joint statement confirms 90-day halt in tariff escalations

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos

  • AUD/JPY climbs amid renewed global trade optimism following encouraging progress in US-China trade talks.

  • A joint statement confirmed the US will suspend 24 percentage points of tariffs on Chinese goods for an initial 90-day period.

  • Japan’s Current Account surplus increased to JPY 3,678.1 billion in March, up from JPY 3,447.8 billion a year earlier.


AUD/JPY climbed more than 1.50% during European trading hours on Monday, reaching around 94.60, driven by a more optimistic global trade sentiment following positive developments in US-China trade negotiations.


The Australian Dollar (AUD), closely tied to China due to strong trade relations, gained ground after the release of a joint statement from high-level talks held over the weekend in Geneva, Switzerland. The statement confirmed that the United States would suspend 24 percentage points of its tariff rate on Chinese goods for an initial 90-day period.


At a scheduled briefing, US Treasury Secretary Scott Bessent highlighted the importance of the agreement, pointing to a 90-day halt in tariff escalations and a significant 115% reciprocal reduction in tariffs. He emphasized the constructive rapport between the two sides and their focus on advancing national interests.


Echoing similar sentiments, US Trade Representative Jamieson Greer praised the mutual respect and understanding achieved during the discussions. He acknowledged that while both sides are committed to the 90-day pause, challenges such as the fentanyl issue remain unresolved.


Meanwhile, the Japanese Yen (JPY) weakened as the positive trade news dampened demand for safe-haven assets. However, downside pressure on the JPY may be limited following Japan’s latest Current Account data.


Japan posted a non-seasonally adjusted current account surplus of JPY 3,678.1 billion in March, up from JPY 3,447.8 billion a year earlier and broadly in line with expectations. Trade Balance - BOP Basis reported that goods account surplus widened to JPY 516.5 billion from JPY 463.5 billion, supported by a 1.8% year-on-year rise in exports, which outpaced the 1.3% increase in imports.


* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
EUR/GBP keeps the red above mid-0.8500s after Eurozone inflation dataThe EUR/GBP cross retreats from the vicinity of the 0.8600 mark, or its highest level since April 23 touched earlier this Tuesday and sticks to modest intraday gains through the first half of the European session.
Author  FXStreet
9 hours ago
The EUR/GBP cross retreats from the vicinity of the 0.8600 mark, or its highest level since April 23 touched earlier this Tuesday and sticks to modest intraday gains through the first half of the European session.
placeholder
Dollar Endures Worst Half in Decades: What's Next for 2025?The dollar experienced its weakest first half in more than 50 years, hurt by geopolitical tensions and former President Donald Trump's trade policies.
Author  Insights
9 hours ago
The dollar experienced its weakest first half in more than 50 years, hurt by geopolitical tensions and former President Donald Trump's trade policies.
placeholder
USD/CHF hits fresh long-term lows near 0.7900 as market sentiment soursThe Swiss Franc is one of the strongest G8 performers, amid higher demand for safe havens as risk aversion increased during Tuesday’s European market session.
Author  FXStreet
10 hours ago
The Swiss Franc is one of the strongest G8 performers, amid higher demand for safe havens as risk aversion increased during Tuesday’s European market session.
placeholder
Forex Today: Comments from central bankers at ECB Forum to drive marketsInvestors will keep a close eye on comments from central bankers as the European Central Bank's (ECB) Forum on Central Banking held in Sintra, Portugal, gets underway.
Author  FXStreet
10 hours ago
Investors will keep a close eye on comments from central bankers as the European Central Bank's (ECB) Forum on Central Banking held in Sintra, Portugal, gets underway.
placeholder
USD/CAD remains subdued near 1.3600 due to improved risk appetiteUSD/CAD moves little after registering over half of a percent losses in the previous session, trading around 1.3600 during the early European hours on Tuesday.
Author  FXStreet
11 hours ago
USD/CAD moves little after registering over half of a percent losses in the previous session, trading around 1.3600 during the early European hours on Tuesday.
Real-time Quote