* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Jackson Hole summit is this week's main event
* Currencies off to subdued start in Asia
* U.S.-China tension remain a risk factor
By Stanley White
TOKYO, Aug 24 (Reuters) - The dollar steadied against major
currencies on Monday as traders looked to more data for a gauge
on the health of the global economy and the Federal Reserve's
annual Jackson Hole retreat for guidance on the outlook for U.S.
monetary policy.
Sentiment for the greenback has improved somewhat due to
supportive data on business activity and home sales, but there
are still concerns that additional monetary easing may be
necessary to keep economic growth on track.
Traders in the yuan, and across the broader financial
markets, are also nervously watching Sino-U.S. ties as President
Donald Trump's wide-ranging diplomatic dispute with China shows
no signs of abating.
"There could be a short-term bounce in the dollar,
especially against the euro," said Junichi Ishikawa, senior
foreign exchange strategist at IG Securities in Tokyo.
"In the long term, the dollar will resume its decline
because the Fed has to commit to aggressive easing for an very
long time."
Against the euro EUR=D3 , the dollar held steady at
$1.1803, clinging onto gains made late last week.
The British pound GBP=D3 bought $1.3095 and traded at
90.14 pence per euro EURGBP=D3 .
The greenback fetched 0.9121 Swiss franc CHF=D3 , holding
onto a 0.5% gain from Friday.
The yen held steady, with the dollar changing hands at
105.76 yen JPY=D3 , showing little reaction after Japanese
Prime Minister Shinzo Abe entered hospital on Monday amid
speculation about his health. Federal Reserve Chairman Jerome Powell will discuss monetary
policy on Thursday at the opening day of the Kansas City Fed's
annual symposium. This year the meeting will be held online, and not at the
hunting and fishing resort of Jackson Hole, Wyoming because of
the coronavirus pandemic.
The quantitative easing that the Fed has deployed so far has
flooded financial markets with excess liquidity and weighed on
the dollar.
Last week the dollar index =USD against a basket of six
major currencies fell to the lowest in more than two years.
It was last trading at 93.155, little changed from Friday.
The world's policymakers have unleashed an unprecedented
wave of monetary easing and fiscal support to offset the
economic drag caused by the pandemic.
However, many countries are now battling a second wave of
infections, which could further delay a full-fledged economic
recovery. As usual, investors will also be watching out for a
further run of data this week for clues on the global economy,
including a second estimate of U.S. GDP for the second quarter
as well as weekly jobless claims and some second tier Asian
indicators.
The euro was on the defensive following disappointing
manufacturing and services sector data for Europe released on
Friday.
The common currency's next major hurdle is the release of
the closely-watched Ifo sentiment survey on Tuesday.
The euro has pulled back slightly from a two-year high
versus the dollar reached last week, which makes it vulnerable
to short-term profit taking, some analysts say.
Net short positions in the dollar declined from a more than
nine-year high hit a week earlier, according to calculations by
Reuters and U.S. Commodity Futures Trading Commission data
released on Friday, which suggests that the greenback's declines
could start to slow. The speculative community has been short the U.S dollar
since mid-March.
The onshore yuan CNY=CFXS traded at 6.9175, little changed
on the day amid lingering doubts about frayed U.S.-China ties.
Trump on Sunday raised the possibility of decoupling the
U.S. economy from China as part of a broad-ranging dispute with
Beijing over China's role in global trade and advanced
technology. The Australian dollar AUD=D3 edged up to $0.7175 after the
state of Victoria reported its lowest daily rise in new
coronavirus infections in seven weeks on Monday, fuelling
optimism that a deadly second wave there is subsiding.
The New Zealand dollar NZD=D3 was steady at $0.6542.