FOREX-Dollar rally regains some momentum; Aussie and Kiwi fall

* Dollar index rises 0.1%
* U.S. fiscal stimulus boosts dollar
* Sino-U.S. tensions keep currency markets subdued
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

LONDON, Aug 10 (Reuters) - The dollar rose in early London
trading on Monday, including versus the euro and Swiss franc,
with investors focusing on fiscal stimulus in the United States
and U.S.-China tensions ahead of key trade talks on August 15.
After talks in Washington over the next round of fiscal
stimulus broke down, U.S. President Donald Trump signed
executive orders on Saturday, partially restoring enhanced
unemployment payments to tens of millions of jobless Americans.
"A little stimulus is simply better than none at all," wrote
Commerzbank analyst Thu Lan Nguyen.
"At least that is how the market seems to see it, which is
why the U.S. Dollar is trading moderately stronger," she added.
Speculators increased their net short dollar positions in
the latest week, according to weekly futures data on
Friday. The dollar index was at 93.5 at 0730 GMT, up 0.1% on the day
=USD .
The euro was down 0.2% versus the dollar, at $1.17685
EUR=EBS , while the safe-haven Swiss franc was had also slipped
0.2% versus the U.S. currency to 0.914 CHF=EBS .
The dollar had strengthened at the end of last week as
tensions between the United States and China escalated, with the
U.S. imposing sanctions on top Hong Kong and Chinese officials.
Prominent democracy activist, Hong Kong media tycoon Jimmy
Lai, was arrested under China's new national security law on
Monday, while U.S. health chief Alex Azar visited Taiwan on
Sunday - a trip condemned by China which claims the island as
its own. Senior U.S. and Chinese officials will meet via
teleconference on August 15 to review the implementation of
their Phase 1 trade deal and likely air mutual grievances.
Overnight data showed China's industrial activity picked up
in July, boosting hopes for an economic recovery and driving
early gains in European stocks. The Norwegian crown gained versus the dollar, up around 0.1%
at 9.0430 NOK=D3 .
The New Zealand dollar was down 0.2% versus the dollar, at
0.6588 NZD=D3 .
The Australian dollar was subdued, down 0.1% versus the U.S.
dollar at 0.71525 AUD=D3 , after the country recorded a
record-high daily increase in COVID-19 deaths on Monday. Prime
Minister Scott Morrison said internal border closures were
unlikely to be lifted before Christmas. Australia's central bank downgraded its outlook for the
national economy on Friday and warned unemployment would stay
high for several years.