FOREX-Dollar slips, trade-related currencies rise on successful US-China phone call

* Greenback falls vs major currencies, except Japanese yen
* Vaccine optimism lifts stocks, but moves in FX contained
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Olga Cotaga
LONDON, Aug 25 (Reuters) - The U.S. dollar fell and the
Australian dollar and Chinese yuan rose after the United States
and China both hailed a phone call between their senior trade
officials as a success.
That reaffirmed investors' faith that even as diplomatic
ties between the two countries fray, the trade relationship can
endure.
On the call, which had been originally scheduled for Aug.
15, U.S. Trade Representative Robert Lighthizer and Treasury
Secretary Steven Mnuchin spoke with Chinese Vice Premier Liu He.
The United States said both sides "see progress" and China's
commerce ministry called the talks "constructive." The news lifted the Australian dollar AUD=D3 0.2% to
$0.7171 and nudged the Chinese yuan CNH=EBS firmer to 6.9070.
The greenback inched lower versus the euro, by 0.2% to
$1.1813 EUR=EBS , and by 0.2% against the British pound to
$1.3088 GBP=D3 .
The U.S. dollar was only up versus the Japanese yen, last
trading at 106.17 yen, 0.2% stronger JPY=EBS .
Sentiment, and support for riskier currencies over the
dollar, was also boosted by a Financial Times report which said
that U.S. authorities were considering fast-tracking approval
for a COVID-19 vaccine being developed by AstraZeneca and Oxford
University. Stocks moved further into record territory by FX moves were
contained as markets were not expecting a breakdown of the trade
deal and looking ahead to a speech from Federal Reserve Chairman
Jerome Powell later in the week, which could shift the U.S.
dollar in either direction.
Investors were expecting he will sound dovish on Thursday at
the Jackson Hole Symposium and might speak to speculation that
the central bank could adopt a more accommodative stance on
inflation.
"The potential dovish shift in Fed policy should be well
priced in by now which should limit further downside potential
for the U.S. dollar," said Lee Hardman, currency analyst at
MUFG.
"As the release of the latest FOMC minutes revealed, there
is also some upside risk for the U.S. dollar if Chair Powell's
disappoints dovish market expectations if any way," he said.
Investors were also looking ahead to Germany's IFO Business
Climate index, due at 0800 GMT, and U.S. consumer confidence
figures at 1400 GMT for clues as to the relative performance of
the two economies.
Softer-than-forecast data on both continents last week
suggests there is downside risk, even though economists polled
by Reuters forecast higher IFO numbers and stronger U.S.
consumer confidence.
U.S. new homes sales - expected at the same time - are also
seen to report more optimistic results.