* Dollar finds support in quiet trade
* Kiwi sharply sold as business confidence sags
* Australian dollar drifts lower ahead of anticipated rate
* European, U.S. data eyed
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Tom Westbrook
SINGAPORE, Sept 30 (Reuters) - The dollar found broad
support on Monday as global political uncertainty and fears over
a widening of the Sino-U.S trade war kept investors in safe
harbours ahead of a slew of global economic indicators this
week.
The greenback was steady against most major currencies. It
held firm on the Japanese yen JPY= at 108.93 per dollar and
sterling at $1.2287, while easing very slightly against the euro
to $1.0932.
It gained against riskier, trade-exposed currencies such as
the Australian dollar and the Chinese yuan. The biggest loser
was the New Zealand dollar, which fell half a percentage point
as business confidence hit its weakest in more than 11 years.
"Risk-off sentiment is prevailing in the market," said
Anthony Doyle, global cross-asset specialist at fund manager
Fidelity International in Sydney, citing U.S. political turmoil
and Brexit as looming worries, besides the trade war.
"There's a lot of uncertainty out there," he said.
In Asian hours, traders mostly shrugged off news that the
Trump administration was considering de-listing Chinese
companies from U.S. stock markets after the reports were hosed
down by Treasury officials. Elsewhere, factory activity surveys in China suggested there
were some signs of improvement this month, though analysts
believe the gains cannot be sustained and forecast further
economic weakness. In Australia, forecasts for a rate cut on Tuesday firmed
with gathering economic gloom. Markets are pricing a better than
75% chance the Reserve Bank of Australia will reduce its cash
rate for a third time this year. RBAWATCH
German inflation, British economic growth and U.S.
manufacturing indicators are all due later on Monday, with U.S.
employment figures at the end of the week. Anything short of
expectations poses a risk to fragile sentiment.
Against a basket of currencies .DXY the dollar edged
higher to 99.165.
The New Zealand dollar NZD=D3 dropped as far as $0.6257,
very close to a four-year low, as a survey showed sour business
sentiment and made a case for a rate cut. The Australian dollar AUD=D3 also drifted lower to $0.6756
on expectations of monetary easing.
With markets largely baking in another rate cut, further
moves in the Aussie will likely be driven by the RBA's tone and
outlook, said Chris Weston, head of research at brokerage
Pepperstone Group in Melbourne.
Traders are expecting a lull in trade-war headlines as China
takes a week-long holiday from Tuesday, which marks the 70th
anniversary of the People's Republic of China.
China's yuan CNY= held steady at 7.1219 per dollar.