AUD/USD last trades at $0.7120, 7 pips.......>

AUSSIE: AUD/USD last trades at $0.7120, 7 pips better off, after closing ~40

pips better off Wednesday, as strong data from Australia and China and reports

of progress in Sino-U.S. trade talks buoyed the Aussie through the day.

- The pair initially ebbed lower in early Asia-Pac trade yesterday, amidst tepid

risk appetite. Subsequent release of higher than exp. Australian trade surplus

(widest on record) and firm retail sales data generated fresh AUD demand. Just

after the releases, the FT reported that Washington and Beijing have resolved

most of the issues that stood in the way of signing a bilateral trade deal

(albeit the report pointed to some sticking points), lifting the pair through

$0.7100, which has capped its earlier gains. This was followed by strong Caixin

services and composite PMI readings from China.

- The rate held gains through the London/NY sessions, as Sino-U.S. trade talks

resumed, while chief White House econ adviser Kudlow and Republican Sen Perdue

struck optimistic notes re: the ongoing negotiations.

- Above $0.7129-$0.7132, which remains intact this week, would expose the

100-DMA/Mar 20 high of $0.7149/50. Bears look to the 200- & 100-HMAs at $0.7101.