FOREX-Euro slips on report that ECB policymakers doubt euro zone growth

* Euro dented by doubts over euro zone growth

* Aussie down 0.4 pct after dovish RBA

* Yen remains close to 2019 low

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh (Recasts, adds context, updates prices)

By Tom Finn

LONDON, April 16 (Reuters) - The euro fell on Tuesday afterseveral European Central Bank policymakers expressed doubt abouta projected growth recovery in the second half of the year.

The concerns about the euro zone's economy come five weeksafter the ECB pushed out the timing of its first post-crisisrate hike until 2020.

The single currency fell 0.2 percent to $1.128EUR=EBS after sources told Reuters that ECB policymakers think thebank's economic projections are too optimistic as growthweakness in China and trade tensions linger.

Major currencies traded within narrow ranges.

Traders are waiting for Chinese gross domestic product dataon Wednesday, which may indicate the worst is over for theglobal economy.

Chinese exports and credit data last week signalled somestabilisation in economic conditions.

Market volatility has eased to multi-year lows in recentweeks, though optimism over U.S.-China trade talks and strongChinese economic data seem to be pushing investors out of safehavens and into riskier currencies, seeking higher yields.

The Australian dollar was the surprise loser afterAustralia's central bank left the door ajar for a possibleinterest rate cut.

The Reserve Bank of Australia believes cutting interestrates would be "appropriate" if inflation stays low andunemployment rises, the central bank's April board meetingminutes showed.

"That fuels expectations that not only will the next move bea cut, but that it will come this year," Societe Generaleanalyst Kit Juckes said.

The Australian dollar lost 0.4 percent to $0.7144AUD=D4 after the release of the minutes, coming off Friday's nearseven-week high.

The Japanese yen remained close to 2019 lows against theU.S. and Australian dollars.

The dollar held steady against a basket of other majorcurrencies on Tuesday, with investors cautious as they lookedfor signs of stabilisation in the global economy.

The dollar index traded flat on the day at 96.950 .DXY after ending the previous session little changed.

"The higher-yielding dollar, with its interest ratedifferential versus the average of G10 foreign exchange beingclose to a two-decade high, continues to retain support,"analysts at ING said in a note to clients.

"For low-yielding major currencies it is difficult to goagainst the dollar's meaningful interest rate differential atthis point," said the note. (Additional reporting by Daniel Leussink in Tokyo; Editing byLarry King and Jan Harvey) ((tom.finn@tr.com; +44 2075427508 ; Reuters Messaging:tom.finn.reuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.