FOREX-Aussie dollar up on hopes of US-China trade deal, sterling holds gains

* Euro up vs dollar as risk appetite returns
* Swedish, Norwegian crowns rise after major falls
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Olga Cotaga
LONDON, Oct 11 (Reuters) - The Australian dollar and China's
yuan, often seen as barometers of investor risk appetite, rose
on Friday on hopes of progress in U.S.-China trade talks, while
optimistic comments from Ireland on Brexit boosted the British
pound.
Top U.S. and Chinese negotiators wrapped up their first day
of trade talks on Thursday, with U.S. President Donald Trump
welcoming what he called a "very, very good negotiation with
China".
Business groups expressed optimism the two sides might be
able to de-escalate their trade war, which has sapped economic
growth around the globe. "Investors are ready to celebrate any form of a U.S.-China
trade deal, even a limited one," said FXTM analyst Han Tan.
The Australian dollar was up 0.2% at 0.6776 per U.S. dollar
AUD=D3 after rising to a two-week high of 0.6782 overnight.
China's yuan was stable after hitting a three-week high in
the Asian trading session of 7.0890 per dollar CNH=EBS .
The safe-haven yen JPY=EBS on the other hand slipped to
108.13 per dollar, its weakest since Oct. 1, as investors' risk
appetite improved.
The euro was up slightly at $1.1018 EUR=EBS , not far from
the three-week high it reached on Thursday against the dollar,
which usually appreciates as a safe-haven currency when trade
relationships worsen.
Sterling was up marginally at $1.2455 GBP=D3 , just under a
two-week high it hit after rising 2% overnight - its largest
daily percentage gain in seven months, driven by hopes for a
Brexit resolution. Euro/sterling was little changed at 88.445
pence EURGBP=D3 .
Irish Prime Minister Leo Varadkar said on Thursday a Brexit
deal could be clinched by the end of October to allow the United
Kingdom to leave the European Union, after what he called a very
positive meeting with Britain's Boris Johnson. Marshall Gittler, chief strategist at ACLS Global, said he
found it hard to change his pessimistic view on the pound,
"especially since we don't know what the two sides actually
discussed."
"I'm also worried that anything that's acceptable to Ireland
might prove unacceptable to the rest of the UK Parliament, and
enough MPs might be willing to choose national suicide rather
than accept the unacceptable. I will therefore retain my
negative bias for now, but recommend watching the situation
closely," Glitter said.
Elsewhere, the Swedish crown, which has been beaten up by
the prospects of dismal global economic growth as result of
trade tensions, got pushed up to a four-day high of 10.8180
against the euro EURSEK=D3 , though its long-term weak trend
remains unbroken for now.
The Norwegian crown was up 0.2% at 10.0280 against the
common currency EURNOK=D3 .