Possible rephrased title: “AUD/JPY Stalls Near 93.00, Potential for Upside Amid Declining Safe-Haven Appeal”

The AUD/JPY pair has stabilized after regaining daily losses and is now trading around 92.80 during the European session on Tuesday. The currency cross is gaining momentum due to a decline in demand for the Japanese Yen, which is considered a safe-haven currency. This change in sentiment can be attributed to the easing tensions in trade between the United States (US) and the European Union (EU), leading to an increase in risk appetite among traders.

Last Friday, US President Trump issued a threat to impose a 50% tariff on imports from the EU. However, after a phone call with European Commission President Ursula von der Leyen on Sunday, he decided to extend the tariff deadline. On Monday, the EU also agreed to accelerate negotiations with the US in an effort to avoid a potential trade war.

Japan’s Finance Minister, Shunichi Kato, commented on the impact of interest rates on the country’s fiscal health on Tuesday. He explained that although interest rates reflect various factors, the market often interprets a rise in rates as a sign of concern over the country’s financial stability. The government will be closely monitoring the bond market, particularly in the super-long sector.

The Australian Dollar (AUD) may have received some support from China where industrial profits increased by 3% year-over-year in April, following a previous growth of 2.6%. This trend continued in the first four months of 2020, with profits growing by 1.4%, compared to 0.8% in the January-March period. Any changes in China’s economy can have an impact on the AUD due to the close trade relationship between the two countries.

According to the Chinese state media outlet, Global Times, positive developments have contributed to the growth in industrial profits in April. The outlet noted that sectors such as equipment and high-tech manufacturing have seen significant profit growth, highlighting the resilience of the industry.

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