* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
* Hopes for U.S.-China trade deal wax and wane
* Traders looking for signs of trade deal this month
* Dollar/yen locked in narrow rage
By Stanley White
TOKYO, Nov 19 (Reuters) - The dollar nursed losses against
major currencies on Tuesday as receding hopes for a preliminary
trade deal between the United States and China hurt demand for
the greenback.
The Australian dollar held steady before minutes from a
Reserve Bank of Australia policy meeting which may provide clues
about the future course of interest rates.
There have been high expectations that the United States and
China would sign a so-called "phase one" deal some time this
month to scale back their 16-month long trade war.
However, the dollar took a hit on Monday after CNBC reported
that China is pessimistic about agreeing a deal, which suggests
a resolution to perhaps the biggest risk to the global economy
remains elusive. "The dollar tried to break above 109 yen, but it couldn't
because of worries about the trade deal," said Junichi Ishikawa,
senior foreign exchange strategist at IG Securities in Tokyo.
"The Treasury market is starting to reflect similar concerns
about the lack of a trade deal. This will keep dollar/yen in a
narrow range."
The dollar JPY=EBS was a shade lower at 108.65 yen,
following a 0.09% decline on Monday.
The dollar was quoted at $1.1072 per euro EUR=EBS on
Tuesday in Asia after falling to the lowest in almost two weeks.
Against a basket of six major currencies, the dollar index
.DXY stood at 97.794, close to a two-week low.
Citing a government source, CNBC reported on Monday that
Beijing was pessimistic about a trade deal with the United
States, troubled by Trump's comments that there was no agreement
on phasing out tariffs. Washington and Beijing have imposed tariffs on each other's
goods in a bitter dispute over Chinese trade practices that the
U.S. government says are unfair.
The tariffs have slowed global trade and raised the risk of
recession for some economies. Many economists say the drag on
global growth will remain as long as tariffs stay in place.
Currency traders were also wary of the dollar after Trump
met U.S. Federal Reserve Chairman Jerome Powell on Monday amid
the U.S. president's repeated criticism that the Fed has not
lowered interest rates enough. "Everything was discussed including interest rates, negative
interest, low inflation, easing, Dollar strength & its effect on
manufacturing, trade with China, E.U. & others, etc.," Trump
tweeted soon after the meeting, calling the session "good &
cordial."
In a statement, the Fed said Powell's expectations for
future policy were not discussed, but Trump has for more than a
year charged the Fed with undermining his economic policies by,
in his view, keeping interest rates too high.
Elsewhere in the currency market, the Australian dollar
AUD=D3 was quoted at $0.6812.
Australia's central bank will release minutes later on
Tuesday from its meeting earlier this month where it kept policy
steady but left the door ajar for further easing if needed.
The central bank has already cut rates three times to an
historic low of 0.75%.
The Aussie took a hit last week after data showed Australian
employment suffered its sharpest fall in three years in October,
underlining the need for stimulus.