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Risk returned to markets in Asia following...>

DOLLAR
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.

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