Modest risk-off was the overriding theme.....>

DOLLAR: Modest risk-off was the overriding theme overnight as global tensions

linked to China's Huawei & ZTE weighed. AUD, CAD & NZD suffered, with Asia

equities down across the board. Despite closing above the 100-dma yesterday, the

DXY failed to extend gains and was held to a narrow 96.03-19 range. Near-term

resistance remains at 96.37 which represents the 50% retracement of 97.71-95.02,

a break opens the 50-dma at 96.65 ahead of a run at the 97 level (96.95 - Jan 2

high). Bears continue to look for a downside break

of the 200-dma at 95.01 to regain control. Gold remains at elevated levels,

holding in the middle of its $1291.40-1295.38 range. The Jan 4 high at $1298.60

continues to provide stiff resistance, ahead of the key $1300 pivot level. In

the US a reminder that Housing Starts & Building Permits are postponed by the

government shutdown. Focus therefore turns to Jobless Claims & Philly Fed with

investors looking to see if the index will fall in-line with the Empire release

earlier in the week.