* China's yuan, A$ below highs hit last week
* Trade deal relief gives way to caution
* Post-election Brexit hopes bolster sterling
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Dhara Ranasinghe
LONDON, Dec 16 (Reuters) - Trade-sensitive currencies such
as the Australian and New Zealand dollars drifted lower on
Monday as relief following last week's U.S./China trade
agreement gave way to frustration over a lack of details and a
reluctance to make big bets as Christmas draws near.
Sterling continued to outperform other major currencies in
the wake of last week's resounding election win for British
Prime Boris Johnson's Conservative Party, while the euro was a
touch firmer ahead of key business activity data.
Washington and Beijing cooled their trade war last week,
reducing some U.S. tariffs in exchange for what U.S. officials
said would be a big jump in Chinese purchases of American farm
products and other goods. That had lifted the Australian dollar and pushed down the
safe-harbour yen last week, before profit taking set in.
"While there is significant relief over the trade deal, a
lot of that would have been in the price already, so now there
is a chance that trade relations could be strained again and we
know a second phase of the trade agreement will be difficult,"
said Jane Foley, senior currency strategist at Rabobank in
London.
The trade-sensitive Australian dollar fetched $0.6874
AUD=D3 , easing from Friday's four-month high of $0.6939.
The New Zealand dollar NZD=D4 was down 0.5% at $0.6596
after climbing to $0.6636 at one stage on Friday, a four-month
high.
The Chinese yuan CNY= traded at 6.9959 per U.S. dollar,
still stronger than the symbolic 7 mark but below the four-month
high of 6.9589 that it hit last week.
Both currencies found some support from slightly
stronger-than-expected Chinese production and consumption data.
The euro was a touch firmer at $1.1133 EUR=EBS , with focus
in Europe turning to the release of "flash" business activity
data for the single currency bloc.
The dollar was a tad firmer at 109.45 yen JPY=EBS although
the dollar index, which measures the greenback's value against a
basket of currencies, was almost 0.2% lower on the day at 97.00.
Markets were awaiting fine details of the trade deal, which
has not been signed yet.
U.S. Trade Representative Robert Lighthizer said on Sunday
the deal would nearly double U.S. exports to China over the next
two years and was "totally done" despite the need for
translation and revisions to its text.
A date for senior U.S. and Chinese officials to formally
sign the agreement was still being determined, he added.
"We have seen over time more reports about the differences
between what the U.S. said and what China said about the
agreement," said Takafumi Yamawaki, head of fixed income
research at JPMorgan Securities in Tokyo. "The U.S. talks about
the size of U.S. farm products China will buy but China stayed
mum."
Elsewhere, sterling climbed back towards Friday's peaks
against the dollar and euro, on expectations that last week's
election win for the ruling Conservative Party will end
near-term Brexit uncertainty.
The British pound was last trading at $1.3380 GBP=D3 , 0.4%
firmer on the day.