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FOREX-Euro on backfoot after report of dovish ECB views; China data awaited


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* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

* Some policymakers feel ECB's econ views are too rosy -report

* Market awaits China GDP data for immediate cues

By Shinichi Saoshiro

TOKYO, April 17 (Reuters) - The euro sagged early onWednesday following a report that some European Central Bankpolicymakers have expressed dovish views, with the marketawaiting Chinese economic data for further cues.

The euro was little changed at $1.1284EUR= after slippingabout 0.2 percent overnight to pull away from a 2-1/2-week highof $1.1324 scaled on April 12.

The single currency came under pressure after Reuters quotedfour sources with direct knowledge of discussions that severalEuropean Central Bank policymakers think the ECB's economicprojections are too optimistic as economic weakness in China andtrade tensions linger. urn:newsml:reuters.com:*:nL5N21X00D

"It remains to be seen whether the ECB policymakers wantedto check the euro's recent advance. But the macro environment isnot conducive for the euro to keep appreciating when the eurozone economy still remains shaky," said Shin Kadota, seniorstrategist at Barclays in Tokyo.

The dollar index against a basket of six major currencieswas steady at 97.073 after gaining 0.1 percent overnight thanksto the flagging euro.

A bounce in long-term U.S. Treasury yields to a four-weekhigh in the wake of equity gains on Wall Street also supportedthe greenback.

The market's immediate focus was on a batch of Chinese datadue at 0200 GMT, for a glimpse of how the world's second largesteconomy performed in the first quarter.

Economic growth is expected to have slowed to its weakestpace in at least 27 years in the first quarter, as policymakersseek to head off a sharper slowdown that could stoke job losses. urn:newsml:reuters.com:*:nL3N21X27V

The New Zealand dollar was down 0.8 percent at $0.6706NZD=D4 after falling to $0.6668, its lowest since Jan. 3.

The kiwi was hit after data showed New Zealand's annualinflation slowed in the first quarter and raised odds of aninterest rate cut in the coming months. urn:newsml:reuters.com:*:nL3N21Y4Y3

The Australian dollar was down 0.15 percent at $0.7166AUD=D4 . The antipodean currency is sensitive to the economicfortunes of China, Australia's major trading partner.

"Chinese data will definitely impact the Australian dollar.But we have to remember that the currency also has key domesticfactors to contend with recently," Kadota at Barclays said.

The Aussie took a brief hit on Tuesday after the ReserveBank of Australia said it believes a cut in interest rates wouldbe "appropriate" should inflation stay low and unemploymenttrend higher. urn:newsml:reuters.com:*:nL3N21Y0PR

The dollar moved out of its recent range and popped up to112.17 yen JPY= , its highest since Dec. 20, following thebounce in U.S. yields. (Editing by Jacqueline Wong) ((shinichi.saoshiro@thomsonreuters.com; Reuters Messaging:shinichi.saoshiro.reuters.com@reuters.net+813-6441-1774))






This article appears in: Stocks , World Markets , Politics
Referenced Symbols: EUR




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