KEY POINTS:
The first confirmed sighting of fugitive Nai Xin Xue has him in Houston, Texas - 2500 kilometres away from where he disappeared into Los Angeles' Chinatown.
The Herald has learned US Marshals are now in Houston hunting Xue, who has been on the run since September 13, after allegedly killed An An Liu in Auckland and dumping their child Qian Xun Xue - nicknamed Pumpkin - in Melbourne on his way to the United States.
The US Marshals have released a new photograph of Xue taken last month, showing he has changed his appearance by growing a moustache and longer hair.
He is in a Tai Chi outfit and pulling a martial arts pose which shows he is back to his chosen profession.
US Marshal commander Tom Hession told the Herald there have been sightings of Xue in Houston.
He has been frequenting other cities in the southern state like Biloxi , Missisipi, where he was seen on January 23 and Mobile, Alabama in the last 12 days.
The Marshals currently believe that Xue is homeless and may be frequenting Chinese restaurants and martial arts studios. Xue may also be driving a 1996 blue Ford Thunderbird with the Texan license plate W56KCK.
"We had leads that he's been in Houston and we'ved confirmed that," Mr Hession said.
Mr Hession said the Marshals had got tips off Xue's appearance on America's Most Wanted, but other leads had come from street detective work".
Mr Hession would not say how exactly they had tracked Xue.
"My people in LA are now in Houston working with the Marshals there. This is a development in the case and the one we have been hoping for."
