Hours after President Trump said Sunday he had "second thoughts" about escalating the trade war with China, the White House sought to explain his remark because it was...Politicsread more
Clouding the G-7 gathering, which represents the world's major industrial economies, are the tit-for-tat tariffs between Washington and Beijing.Politicsread more
President Donald Trump said that he would have a major trade deal with U.K. after it leaves the European Union.Politicsread more
Despite Kudlow's expectations, China said on Saturday that it strongly opposes Trump's decision to levy additional tariffs on $550 billion worth of Chinese goods, and warned...Politicsread more
President Donald Trump said Sunday he was not happy after North Korea launched short-range ballistic missiles over the weekend.Politicsread more
Carl Medlock used to work at Tesla. Now he's one of the few people in the U.S. that can fix the company's original Roadster electric vehicles.Technologyread more
The Goldman Sachs technology M&A team, led by Sam Britton, has cashed in on its software focus and decades of experience to dominate 2019's biggest deals.Technologyread more
American small and medium-size companies that rely on China are scrambling to adjust their business plans in response to the escalating trade war.Traderead more
Here are the products that stand to be the most affected by China's new tariffs on $75 billion worth of U.S. goods.Marketsread more
The summit comes amid fears over a global economic slowdown, and U.S. tensions over trade allies, Iran and Russia.Politicsread more
The world's second biggest economy is past a point where it cannot ignore its enormous debt anymore, according to an analyst.China Economyread more
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
TOKYO, May 14 (Reuters) - China's offshore yuan and the Australian dollar found their footing again on Tuesday as broader sentiment stabilized after U.S. President Donald Trump said he expected Sino-U.S. trade negotiations to be successful.
Trump said earlier he would meet with Chinese President Xi Jinping at a G20 summit next month. China had announced on Monday it would impose higher tariffs on $60 billion of U.S. goods following Washington's decision last week to hike its own levies on $200 billion in Chinese imports.
Though analysts said it would take time for volatility to settle completely, risk-sensitive currencies including the offshore yuan and the Aussie held up well following comments from Trump late on Monday that trade talks with China are "going to be very successful."
Masafumi Yamamoto, chief currency strategist at Mizuho Securities, said the timing of Beijing's announcement that it would impose higher tariffs on U.S. goods had exacerbated moves in the foreign exchange market during the previous session.
"It seems the timing was probably a surprise so the moves in the currency market were rather large," Yamamoto said, adding that market participants could also be over-reacting to Trump's latest trade-related comments.
"Trump said he believes that (the trade talks) will be successful, but success for him isn't necessarily a success for China," Yamamoto said.
China's offshore yuan last gained about a quarter of a percent at 6.8948 per dollar.
The yuan had suffered its steepest one-day decline since late July last year during the previous session, before hitting its lowest versus the greenback since late December early on Tuesday.
The Australian dollar managed to firm a tenth of a percent to $0.6952 after brushing its lowest since early January earlier in the session.
The Aussie is often seen as a proxy for Chinese growth because of Australia's export-reliant economy and China being the country's main destination for its commodities.
"Volatility in the market has risen quite a lot. I think it will take time before it will settle," said Yukio Ishizuki, senior currency strategist at Daiwa Securities.
Ishizuki said he thought it was unlikely that sentiment would deteriorate significantly from here ahead of Trump's planned meeting with Xi next month.
"Quite a lot of negative news has come out. But with things as they are, those have already been priced in by the market," he added.
The dollar index against a basket of six rivals held steady at 97.320, having ended the previous session little changed.
Investor focus on Tuesday was also on euro zone industrial production for March and Germany's ZEW economic sentiment index for May, both due around 0900 GMT.
The euro rose 0.15% to $1.1238. Sterling was a shade higher at $1.2968.
Against the safe-haven yen, the dollar gained a quarter of a percent to 109.60, bouncing in line with the recovery in sentiment after falling as low as 109.15 yen in early trade.
The greenback had touched a more than three-month low of 109.02 yen brushed during the previous session when it shed nearly 0.6%.
Bitcoin, the world's best-known cryptocurrency, on Monday hit $8,000 on the Bitstamp exchange for the first time since July last year, before retreating slightly.
It was last up 1.9% on the day at $7,965.98.
(Editing by Simon Cameron-Moore)