CORRECTED-FOREX-Yuan rises after Trump says trade talks could succeed

(Corrects day in first paragraph to Tuesday from Wednesday)
* Yuan and Aussie dollar recover slightly
* Yen, Swiss franc slip as sentiment lifted
* Euro zone industrial production for March due at 0900GMT
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Tom Finn
LONDON, May 14 (Reuters) - China's yuan and the Australian
dollar regained some poise on Tuesday after upbeat comments from
U.S. President Donald Trump suggested trade talks with Beijing
could yet make headway.
The Chinese currency sank to a 2019 low of 6.92 on Monday in
response to Washington and Beijing raising tariffs on the
other's goods.
But the yuan managed to break a six-day losing streak on
Tuesday and rose 0.25% as broader sentiment stabilised after
Trump said he expected Sino-U.S. trade negotiations to be
successful. China would be likely to intervene to stop any plunge
through 7 against the dollar and could sell its vast holdings of
Treasuries as a negotiation tactic against the United States.
Analysts are trying to gauge what the net effect of
permanent U.S. tariffs on Chinese imports would be on the
dollar.
The only obvious impact on currencies is elevated risk
aversion which tends to benefit conventional safe havens such as
the Swiss franc and the Japanese yen.
"Trade wars do not benefit the dollar. If you look at the
yen/dollar pair reacted to China announcing tariffs on U.S.
goods it was clearly not positive for U.S. assets," said Viraj
Patel, a currency strategist at Arkera, a financial technology
firm.
The Australian dollar managed to firm a tenth of a percent
to $0.6952 AUD=D4 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 main destination for its commodities.
The euro rose 0.15% to $1.1238 EUR=EBS .
"The euro has been resilient despite the latest bout of
trade tensions and it's probably down to people who were short
euros vs emerging market currencies and are now buying euro back
and unwinding euro hedges," said Stephen Gallo, European head of
FX strategy at BMO Capital Markets in London.
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.