Foreign exchange-Trade optimism puts ground on greenback/yen, boosts Aussie – Reuters

* USD/JPY stays not considerably from six-mth peak, AUD hits five-mth high

* U.S.-China trade optimism supports danger-on sentiment

* No major moves expected as getaway-thinned trade persists

* Graphic: World Fx costs in 2019

By Tomo Uetake

SYDNEY, Dec 27 (Reuters) – The greenback hovered around a 6-thirty day period high compared to the Japanese yen even though the Australian greenback climbed to its strongest since July on Friday, buoyed by easing Sino-U.S. trade tensions.

The optimism around prospective customers for a trade deal lessened desire for secure-haven currencies this kind of as the yen, but with world-wide currency marketplaces in a getaway temper after Christmas Working day on Wednesday, overall trading activity was largely subdued.

Beijing explained on Wednesday it is in near touch with Washington on a trade deal signing ceremony, a working day after U.S. President Donald Trump explained he and Chinese President Xi Jinping will have a ceremony to indication the not long ago struck arrangement.

Overnight, the greenback rose to as high as 109.68 yen in opposition to the secure-haven Japanese currency, a one particular-week high and not considerably from 109.seventy three yen, its late Could peak brushed before this thirty day period. In Asian trade, the pair was last quoted at 109.forty seven yen.

“Although the overnight gains in the greenback were partly erased by dipping Treasury yields after the seven-calendar year take note auction, U.S.-China trade optimism has place a good ground less than the greenback,” explained Toshinobu Chiba, chief portfolio manager for mounted revenue at Nissay Asset Management.

“In any scenario, I never assume any substantial moves both way in marketplaces these days as trading continues to be subdued due to the getaway week.”

U.S. Treasury yields slipped on Thursday after the Treasury Department bought $32 billion in seven-calendar year notes to sturdy desire. The ten-calendar year last stood at one.894%, its least expensive degree in one-one/2 months.

The trade-delicate Aussie greenback firmed to as high as $.6951 in opposition to its U.S. counterpart.

The euro was a shade better at $one.1117 compared to the greenback.

The offshore yuan weakened a little bit to six.9958 yuan for every greenback.

Income at China’s industrial companies in November grew at the swiftest speed in eight months, breaking a a few-thirty day period declining streak, as output and income quickened, but wide weak spot in domestic desire continues to be a danger for earnings subsequent calendar year. (Enhancing by Jacqueline Wong)

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