AUD/USD last trades at the session high of...>

AUSSIE: AUD/USD last trades at the session high of $0.7107, 36 pips higher on

the day. The Aussie jumped to the top of the G10 pile, propped up by strong

regional data releases and revived optimism re: Sino-U.S. trade talks, although

AUD/USD ebbed lower initially.

- Subsequent release of Australian trade balance and retail sales put a fresh

bid into the pair, as trade surplus rose to A$4.801bn, the highest level on

record, vs. a forecasted decline to A$3.700bn, while retail sales accelerated to

+0.8% M/M, also topping expectations.

- The pair then extended gains on the back of an FT source story, which stated

that the U.S. and China "have resolved most of the issues standing in the way of

a [trade] deal," albeit adding that some sticking points remain.

- Strong Caixin services and composite PMIs from China further boosted AUD/USD.

The services gauge touched its best levels since Jan 2018.

- A move through the down trendline from Jan 31 at $0.7125 would draw bullish

attention to Monday's high of $0.7132. Conversely, bears look for a return below

the $0.7100 mark before challenging the 21-DMA at $0.7085, breached overnight.