* 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
(Updates Canadian, Norwegian currencies, adds quotes, chart)
By Dhara Ranasinghe
LONDON, Dec 16 (Reuters) - Trade-sensitive currencies such
as the Australian dollar and Chinese yuan held below four-month
highs on Monday as relief following a U.S.-China trade agreement
gave way to caution due to lack of details.
Sterling remained bolstered by last week's resounding
election win for British Prime Boris Johnson's Conservative
Party, while Norway's crown rose to its highest in almost three
months ahead of this week's Norwegian central bank meeting.
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. 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".
A date for senior U.S. and Chinese officials to formally
sign the agreement was still being determined, he added.
Caution over the future path of trade talks pushed the trade
sensitive Chinese yuan and Australian dollar off last week's
four-month peaks.
"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.
The Australian dollar fetched $0.6874 AUD=D3 , easing from
Friday's four-month high of $0.6939.
HIGHEST LEVEL
The New Zealand dollar NZD=D3 was dropped 0.3% at $0.6611
after climbing to a four-month high at $0.6636 on Friday. The
Canadian dollar strengthened 0.3% to its highest level in almost
six weeks at $1.3127 CAD=D3 .
The offshore Chinese currency CNH=EBS was little changed
around 7.00 yuan per dollar but below four-month highs around
6.92 hit last week.
It found support from slightly stronger-than-expected
Chinese production and consumption data.
The euro rose 0.2% to $1.1142 EUR=EBS , but also off last
week's peaks. It showed little immediate reaction to data
showing euro zone business growth remained weak in December.
The dollar was a tad firmer at 109.43 yen JPY=EBS although
its index, which measures the greenback's value against a basket
of currencies, was slightly lower on the day at 97.02.
Speculators' net long U.S. dollar positioning fell in the
latest week, according to calculations by Reuters and U.S.
Commodity Futures Trading Commission data released on Friday.
"On the back of the trade deal, the main thing is a recovery
in risk appetite, which means a softer dollar going forward and
a firmer euro," said Fritz Louw, a currency strategist at MUFG.
"But at some point markets will start to price in that there
is no clear plan for phase 2 (of the trade deal)."
Elsewhere, sterling rose as much as 0.7% on expectations
that last week's election win for Britain's ruling Conservative
Party will end near-term Brexit uncertainty.
The British pound was last trading at $1.3358 GBP=D3 , 0.3%
firmer on the day.
Norway's crown rallied 0.6% to 8.988 per dollar ahead of
this week's Norwegian central Bank meeting NOK=D3 .
Analysts at ING said they expected the Norges Bank to have a
"modest hawkish bias" at Thursday's meeting.
Currency market positioning https://tmsnrt.rs/38EYb41
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