- The AUD/JPY advances as Japanese yen back after weaker export figures from Japan’s expected for March.
- Japan exports increased by 3.9% year -on -year, below the 4.5% prognosis and in strong decrease from the 11.4% increase in February.
- The Australian dollar is still under pressure after the publication of mixed domestic employment data.
The Aud/JPY recovers its recent losses registered in the previous session, quoting about 90.70 during the European session on Thursday. The recovery is largely due to the weakness of the Japanese Yen (JPY), after the disappointing export data of Japan for March. Export growth increased only 3.9% year -on -year to 9,847.8 billion JPY, being below the expected increase of 4.5%. This marks a significant deceleration from the 11.4% increase in February, which had been driven by American tariffs on steel and aluminum. However, a rebound in imports suggests that domestic demand remains relatively resistant.
Adding to the narrative, the Minister of Economy of Japan, Ryosei Akazawa, declared that currency problems were not part of the ongoing commercial conversations in Washington. Japan is pressing the total elimination of Trump era tariffs, including a base tariff of 10% and an additional 25% tax on car exports. Akazawa indicated that Japan seeks a mutually beneficial agreement as soon as possible, while noting that the US seems to be interested in reaching an agreement within the current 90 -day negotiation window.
Despite the softness of the JPY, the profits in the Aud/JPy torque can be limited due to the winds against the Australian dollar (Aud). Australia’s last employment report showed that the unemployment rate increased to 4.1% in March, just below the 4.2% forecast. Meanwhile, the change in employment was 32.2K, being below the expected 40K figure.
The Aud found some support for the improvement of the feeling of global risk, after the US president Donald Trump announced exemptions for key technological products of the proposed “reciprocal” tariffs. These exemptions – which cover smartphones, computers, semiconductors, solar cells and flat panel screens – mainly benefit to products manufactured in China, the largest commercial partner in Australia and also an important buyer of their raw materials. However, Trump simultaneously launched an investigation into possible critical mineral tariffs, even more scaling commercial tensions with China.
Commercial War between the US and China Faqs
In general terms, “Trade War” is a commercial war, an economic conflict between two or more countries due to the extreme protectionism of one of the parties. It implies the creation of commercial barriers, such as tariffs, which are in counterbarreras, increasing import costs and, therefore, the cost of life.
An economic conflict between the United States (USA) and China began in early 2018, when President Donald Trump established commercial barriers against China, claiming unfair commercial practices and theft of intellectual property by the Asian giant. China took retaliation measures, imposing tariffs on multiple American products, such as cars and soybeans. The tensions climbed until the two countries signed the Phase one trade agreement between the US and China in January 2020. The agreement required structural reforms and other changes in China’s economic and commercial regime and intended to restore stability and confidence between the two nations. Coronavirus pandemia diverted the attention of the conflict. However, it is worth mentioning that President Joe Biden, who took office after Trump, kept the tariffs and even added some additional encumbrances.
Donald Trump’s return to the White House as the 47th US president has unleashed a new wave of tensions between the two countries. During the 2024 election campaign, Trump promised to impose 60% tariff particularly in investment, and directly feeding the inflation of the consumer price index.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
