FOREX-Euro bounces on expectations Trump will delay auto tariffs

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
* Trump expected to delay imposing auto tariffs, easing
trade woes
* Euro lifted on hopes transatlantic trade tensions won't
heat up

By Shinichi Saoshiro
TOKYO, May 16 (Reuters) - The euro was buoyant on Thursday
as trade concerns eased on expectations that U.S. President
Donald Trump will delay implementing tariffs on imported cars.
Trump administration officials told Reuters on Wednesday
that the president is expected to put off a decision on imposing
tariffs on imported cars and parts by up to six months, for now
preventing a further increase in transatlantic trade tensions.
The euro was 0.05% higher at $1.1207 EUR= , having bounced
overnight from a one-week low of $1.1178. The single currency
was initially hit as Italy's Deputy Prime Minister Matteo
Salvini criticized European Union rules for the second day.
"Long term prospects for the euro are not particularly
bright, given the region's soft economic fundamentals. But the
news on the auto tariff delay is helping the euro establish
support at the $1.1200 threshold," said Shin Kadota, senior
strategist at Barclays in Tokyo.
The dollar traded little changed at 109.500 yen JPY= .
The greenback had retreated to a low of 109.150 against the
safe-haven yen on Wednesday as U.S. yields slid on weak U.S.
April retail sales and industrial output data. China had also
reported surprisingly weaker growth in retail sales and
industrial output for April, denting riskier assets. But the U.S. currency retraced its losses against the yen as
trade tensions softened.
The dollar index against a basket of six major currencies
was nearly flat at 97.542 .DXY after posting modest gains the
previous day.
The Australian dollar nudged down 0.1% to $0.6922 AUD=D4 ,
staying within touching distance of a 4-1/2-month low of $0.6915
touched the previous day on weak domestic wages data and soft
Chinese economic indicators.
Immediate focus for the Aussie was on the Australian
employment data due at 0130 GMT.

(Editing by Shri Navaratnam)