* Market players wind back optimism on Sino-U.S. trade
* China data undershoots expectations, yuan little affected
* Australian dollar tumbles after dismal local jobs data
* Dollar index near 1-month peak, U.S. inflation rises
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Hideyuki Sano
TOKYO, Nov 14 (Reuters) - Doubts over whether the United
States and China will be able to reach a preliminary trade deal
helped to lift safe-haven currencies such as the yen and the
Swiss franc on Thursday, while pulling the yuan lower.
Adding to pressure, Chinese retail sales, industrial output
and investment data were weaker than expected, sending the
Australian dollar, already knocked by soft local employment
data, to a one-month low.
U.S.-China trade negotiations have 'hit a snag' over farm
purchases, with Beijing not wanting a deal that looks one-sided
in favour of the United States, the Wall Street Journal reported
on Wednesday, citing people familiar with the matter.
The report came after President Donald Trump said a trade
deal with China was "close," but offered no details and warned
that he would raise tariffs "substantially" on Chinese goods if
there was no deal. An agreement last month between the two economic powers to
sign a "phase one" pact to end their trade war boosted optimism
in global financial markets, lifting the yuan and other
risk-sensitive currencies.
"If Trump takes a hard line, emboldened by the latest
strength in stock markets, and refuses to make some concessions
to China, there will be risk an agreement cannot be reached at
the last minute," said Makoto Noji, chief currency and foreign
bond strategist at SMBC Nikko Securities.
A new Reuters poll showed most economists do not expect
Washington and Beijing to reach a permanent trade truce over the
coming year. The yen firmed to 108.77 yen per dollar JPY= , having risen
to as high as 108.66 in previous U.S. trade.
The Japanese currency, often used as a safe-haven asset
because of Japan's status as the world's largest net creditor
nation, has hit a five-month low of 109.49 a week ago.
Against the euro, the yen was firm at 119.60 per euro
EURJPY= , near one-month high touched the previous day.
The yen hardly budged after Japan's GDP data showed the
economy grew an annualised 0.2% in July-September, much below
economists' forecast of 0.8%. The Swiss franc has been firm, having risen almost 0.6% over
the last two days against the euro, to hit its highest level in
more than a month.
The franc traded at 1.0895 per euro EURCHF= , near
Wednesday's peak of 1.0879. Against the dollar, the franc stood
at 0.9898 per dollar CHF= .
The unexpectedly downbeat China data highlighted continued
pressure on the world's second-largest economy and subsequent
risks to global growth. The yuan took the data in its stride, though, staying little
changed at 7.0223 yuan per dollar in onshore trade CNY=CFXS .
But it stood off its three-month high of 6.9650 touched on
Friday.
The Australian dollar was down more than a half percentage
point to a one-month low of $0.6798 AUD=D4 after the data.
It was pummelled earlier by weak domestic employment data
showing the first fall in payrolls in three years. The euro stood little changed at $1.10075 EUR= , having
touched one-month low of $1.0995 in U.S. trade while the dollar
index stood not far from one-month high touched in the previous
session.
The index last stood at 98.38 =USD .
U.S. consumer prices jumped by the most in seven months in
October, which together with abating fears of a recession,
support the Federal Reserve's signal for no further interest
rate cuts in the near term. Federal Reserve Chair Jerome Powell on Wednesday told
Congress that the negative interest rates sought by Trump aren't
appropriate for a U.S. economy with ongoing growth, a strong
labour market and steady inflation. Sterling was little moved at $1.2857 GBP=D4 , stuck in a
tight range this week, in a limbo ahead of a Dec. 12 election.
A poll carried out for the Daily Telegraph newspaper showed
British Prime Minister Boris Johnson's Conservatives have a
healthy 10-point lead over main opposition Labour. One-month implied volatilities of sterling options jumped to
11.4/12.1% GBP1MO= from 7.25/7.95% on Wednesday as the
instruments start to cover a period after the election.
Still, that is below this year's high above 14% marked in
late October.