AUD/JPY hits several weeks higher, about 92.00 in the middle of US-China trade tensions in the middle
- The AUD/JPY scales are higher on the third straight day in the middle of optimism in the US-China trade agreement.
- The requesting requirements for safe deterioration undermines JPY and gives the cross further support.
- Different political expectations of Boj-RBA require the caution of the aggressive bullish trader.
Aud/JPY Rist attracts the third consecutive day's followers and touches on the top three weeks on Friday during the Asian session, around 92.00. Moreover, a supportive fundamental background refers to the fact that the smallest resistance of point prices remains upside down.
Signs of relief of US-China tensions continue to hopes that the world's two largest trade warfare trade warfare and supports a positive risk tone. In fact, US President Donald Trump said on Thursday that trade speeches between the US and China were going on. In addition to this, China has allegedly stopped its 125% tariff for some US imports.
Developments undermine the safe impaired Japanese yen (JPY) and the benefits of antipodean currents, including Aussie, which in turn are considered as the Aud/JPY cross -wind. However, Guo Jiakun, a spokesman for the Chinese Foreign Ministry, told reporters on Thursday that China and the US have not consulted on tariffs or negotiations. This can cover market optimism.
Meanwhile, data published this Friday showed that consumer inflation in Tokyo accelerated in April and raised the contributions of higher interest rates to Japanese Bank (BOJ) in 2025. In contrast, markets are prices that the Australian Reserve Bank (RBA) fell lower prices 25 base points (BPS) in May. This can prevent bulls from aggressive stakes around AUD/JPY.
Tariffs
Tariffs are customs duties imposed on the import or category of products of certain goods. Tariffs are designed to help local manufacturers and manufacturers be more competitive in the market, providing a valuable advantage over similar goods that can be imported. Tariffs are widely used as protectionism tools with trade barriers and import quotas.
Although both tariffs and taxes earn both government revenues for public benefits and services, they have many differences. The tariffs are paid at the entry port, but the taxes are paid during the purchase. Taxes are imposed on individual taxpayers and businesses, while tariffs are paid by importers.
There are two thought schools among economists on the use of tariffs. Although some claim that tariffs are needed to protect domestic industries and solve trade imbalances, others consider them as a harmful tool that can raise prices and lead to damaging trade war in the long run, encouraging tariffs.
Before the presidential election in November 2024, Donald Trump made it clear that he intended to use tariffs to support US economy and American manufacturers. In 2024, Mexico, China and Canada accounted for 42% of the US import. During this period, according to the Mexican US Census Bureau, the $ 466.6.6.6.6 -billion exporter. Therefore, Trump wants to focus on these three countries when setting tariffs. He also intends to use the income earned through tariffs to reduce personal income taxes.
