AUD/USD added 11 pips overnight and last.....>

AUSSIE: AUD/USD added 11 pips overnight and last trades at $0.7090, as the

Aussie drew support from optimism re: Sino-U.S. trade relations. AUD started on

the front foot after WSJ & BBG reported that Washington & Beijing are close to

signing a trade deal, which would scrap "most or all" U.S. tariffs, if China

meets a set of requirements, including better IP protection & conducting

purchases of significant amounts of U.S. goods.

- The subsequent release of softer than exp. AU Q4 GDP partials dragged the pair

close to unch. levels, before the move lower was retraced on the back of

comments from Chinese National People's Congress' spokesman Zhang, who noted a

"substantial progress" in trade talks with the U.S.

- Bulls initially look to $0.7117, which capped gains overnight. A break above

would draw their attention to the 21-DMA at $0.7127. Meanwhile, bears look to

the Feb 22 low of $0.7083, ahead of the Feb 21 & cloud top at $0.7070.

- AU focus this week turns to the RBA MonPol decision & BoP c/a balance due

Tues, a presser with RBA Gov Lowe & Q4 GDP due Wednesday, as well as retail

sales & trade balance due Thursday.