AUSSIE-YEN: AUD/JPY last deals at Y79.58, 16 pips....>

AUSSIE-YEN: AUD/JPY last deals at Y79.58, 16 pips better off, as optimism re:

Sino-U.S. trade talks has supported the broader risk appetite. 

- The pair registered a ~25 pip spike to its session high of Y79.64 on the back

of comments from Chinese President Xi, who noted "substantial progress" in trade

talks with the U.S. and called for an early conclusion of a bilateral deal.

Subsequent pullback from the peak was stopped by remarks from Chinese VP Liu,

who noted that "a new consensus [with Washington] has been reached," sending the

rate back towards its best levels.

- Nevertheless, it is worth noting that the rate has stuck to a 28 pip range

thus far.

- The pair is nearing the upper end of its recent range entered during the week

following the Jan 3 flash crash, spanning between the Feb 8 low of Y77.44 and

the Feb 5 YTD high of Y79.85. A lift through the aforementioned YTD peak would

help bulls gain some topside momentum. Conversely, bears look for a return below

the 100-DMA at Y79.28, which capped gains on Monday. Below here opens the

21-DMA, located at Y78.80.