Risk returned to markets in Asia following...>

DOLLAR: Risk returned to markets in Asia following news that China's top trade

war negotiator is to head to the US for discussions. The USD was broadly weaker

across the board, paring some of yesterday's gains. Having touched 97.69, The

DXY eased off its best levels since Jun 2017 before basing ahead of 97.45.

Resistance is seen at 97.98 which represents the 61.8% retracement of

103.82-88.54, a break of the 98 level will likely accelerate the move toward the

May 17 2017 high at 98.12. Support comes in today at 96.44/40 (61.8%

95.67-97.69, 21-dma). Gold breached the 50% retracement level at $1201.94,

before basing ahead of $1200. This was highlighted in an MNI Analysis email

yesterday (Gold Accelerating Downtrend - 1149GMT). A break of channel base

support around the $1200 level opens the potential of a move toward Oct 8 low at

$1182.96. The US 10Y eased back under 3.16%, albeit held to a very narrow range.