* Euro near 33-month low as growth stagnates in euro zone
* Market sees soft U.S. data as driven by one-off factors
* Yen shows limited response to poor Japan GDP
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
LONDON, Feb 17 (Reuters) - The euro struggled near 3-year
lows on Monday as investors worried about weakening growth in
the region, while Chinese efforts to limit the damage from a
coronavirus outbreak appeared to calm markets, with the yuan and
Australian dollar gaining.
Monday is light on economic data but traders are looking to
a German business sentiment indicator due on Tuesday and
purchasing managers index flash data later this week for further
evidence on the state of the euro zone economy.
Last week data showed momentum in powerhouse economy Germany
struggling in particular.
"EUR/USD seems to be comfortably trading around its new lows
and in the next few days we expect to see a continuation in the
recent downtrend rather than any clear rebound," said ING
analysts.
"The fears around the coronavirus impact on the Eurozone
economy remain well in place while data this week should be in
line with latest releases in providing a non-encouraging
picture."
The euro nudged higher to $1.0845 EUR=EBS in early trading
but had earlier touched $1.0817, its weakest since mid-2017.
Elsewhere the yen was largely unfazed by weak economic
growth data. It traded down 0.1% at 109.84 yen per dollar
JPY=EBS .
The world's third-largest economy shrank 1.6% in the three
months to December, the largest drop in six years, hit by sales
tax hike. Most market players expect growth in the United States to
remain stronger among the developed world, although data
published on Friday provided a mixed picture.
U.S. core retail sales was flat last month, lagging
expectations of 0.3% growth while its rise in December was
revised down to 0.2% from a previously reported 0.5%. Industrial production also shrank more than expected by
0.3%.
Still, economists have blamed one-off factors such as warm
weather and output suspensions stemming from troubles at Boeing
BA.N for the downbeat numbers.
The dollar index =USD stood at 99.131, near Friday's 4
1/2-month high of 99.241.
The Australian dollar edged up as investors assessed the
latest reading on coronavirus cases in China's Hubei Province,
the epicentre of the outbreak.
The province reported 1,933 new cases, up slightly from the
previous day after two days of falls, but the number of new
deaths dropped to 100 from 139. Nationwide, the total infections
topped 70,000. The Australian dollar ticked up 0.1% to $0.6724 AUD=D3 .
The currency, which is used as a proxy for risk on Chinese
assets because of Australia's high trade exposure to the Asian
giant, has partly been supported by expectations of stimulus
from Beijing.
The offshore Chinese yuan CNH=EBS also rose, trading 0.1%
higher at 6.9835 per dollar.
Sterling was little changed at $1.3046 GBP=D3 .
"Coronavirus is increasingly looking like a long-term issue
and thus, at least for currency markets, it will be playing
second fiddle," said Kyosuke Suzuki, manager of currencies at
Societe Generale.
"In contrast, sentiment on the euro is becoming clearer,
with weak economic fundamentals helping to push it down."