AUSSIE-YEN: AUD/JPY knee-jerked higher as news.......>

AUSSIE-YEN: AUD/JPY knee-jerked higher as news outlets ran headlines from

China's Xinhua, stating that top trade officials from China and the U.S. held a

phone conversation (later confirmed by official sources) and intend to continue

phase-one talks. Enthusiasm waned as it became apparent that the headlines

brought little of note.

- Other than that, AUD/JPY remained range-bound through the session. Little

attention was paid to the regional data releases & central bank rhetoric.

- The rate last sits at Y73.90, 7 pips better off. It has been recently limited

by the 38.2% retracement at Y74.08. If the level gives way, bulls will be able

to target the Nov 18 high of Y74.32. A drop under the 50-DMA at Y73.74 would

give the green light for targeting Y73.36, the low of Nov 14.

- RBA Governor Lowe will speak about other countries' experience with

unconventional monetary tools later today.