FOREX-China trade data props euro above three-month lows

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* Graphic: World FX rates in 2019

By Saikat Chatterjee

LONDON, Feb 14 (Reuters) - The euro held above a three-monthlow on Thursday as improved Chinese trade data and hopes ofprogress in China-U.S. trade talks lifted risk sentiment, withthe Australian dollar leading gains by more than half a percent.

"There is already a lot of bad news priced into the euro atthese levels," said Kenneth Broux, a currency strategist atSociete Generale in London.

Massive option expiries amounting to $1.2 billion around$1.13 were expected to keep the euro spot market in a tightrange.

Risk appetite grew after China reported dollar-denominatedexports rose 9.1 percent in January from a year earlier andimports dropped 1.5 percent.

The strong trade data fuelled gains by the Chinese currencyin the offshore market. The yuan CNH= gained a quarter of apercent to 6.7635.

The Australian dollar AUD=D3 , a barometer for global riskappetite, was up 0.6 percent at $0.7132 and on track for itsbest three-day rising streak so far this year.

Bloomberg reported President Donald Trump was consideringpushing back by 60 days a March 1 deadline for resolving tradedisputes with China, citing people familiar with the matter. OnWednesday, Trump had said the talks were "going along verywell".

Elsewhere, German data showed its economy stalled in thefinal quarter of 2018, narrowly avoiding recession. But thenumbers were in line with forecasts and weak eurozone GDP datafor the quarter had already tempered expectations.

The euro EUR=EBS up at $1.1268 and just above athree-month low of $1.1248. (Reporting by Saikat Chatterjee; editing by Larry King) ((; +44-20-7542-1713;Reuters Messaging:

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