* Chinese yuan, A$ off 4-month peak touched last week
* Sterling maintain strength after decisive UK election
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Hideyuki Sano
TOKYO, Dec 16 (Reuters) - The Chinese yuan and the
Australian dollar hovered below four-month highs touched last
week in early Monday trade as investors pored over the
U.S.-China trade deal, while sterling stayed strong after a
decisive UK general election.
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. The last-minute agreement that averted additional tariffs on
Chinese goods totalling $160 billion had lifted the yuan and the
Australian dollar and had pushed down the safe-haven yen and the
dollar last week, before profit-taking set in.
"It is not that markets are unhappy with the agreement but
we will inevitably see some position adjustments as we approach
the year-end holiday period," said Yukio Ishizuki, senior
strategist at Daiwa Securities.
The offshore yuan traded at 7.0026 yuan per dollar CNH= ,
slipping back from a four-month high of 6.9247 per dollar hit
last week.
The trade-sensitive Australian dollar fetched $0.6876
AUD=D4 , easing from Friday's four-month high of $0.6930
The euro stood at $1.1126 EUR= , up 0.05% so far in Asia,
off four-month peak of $1.1200 set in Asian trade on Friday.
The dollar traded at 109.40 yen JPY= , having risen to
109.71 yen on Friday.
Some analysts also noted investors may need to read the fine
print of the deal, which has yet to be officially signed.
U.S. Trade Representative Robert Lighthizer said on Sunday
the deal will nearly double U.S. exports to China over the next
two years and is "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 is still being
determined, he added. "We have seen over time more reports about the differences
between what 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."
Many traders were also sceptical whether there will be any
another deal after the latest one, which the Trump
administration has called "phase one", given the fundamental
differences over key issues such as intellectual property
rights.
Elsewhere, sterling gained 0.2% in early Asian trade on
Monday to $1.3353 GBP=D4 .
It has risen to $1.3516 on Friday, a high last seen in May
last year, after British Prime Minister Boris Johnson won a
commanding election victory last week, enabling him to end three
years of deadlock over Brexit.
Johnson's government is expected to bring the Withdrawal
Agreement Bill back to parliament before Christmas, to allow
Britain to exit the European Union by Jan. 31.