FOREX-Euro stuck against dollar; Aussie gets Chinese boost

* Currencies still driven by tug of war between central
banks
* Australian dollar reaches 10-day high after Chinese data
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Olga Cotaga
LONDON, July 15 - The euro rose on Monday but remained
within its recent trading range against the dollar before
central bank meetings later this month.
Foreign exchange markets were quiet, with the Australian
dollar - enjoying a boost from encouraging Chinese economic data
- the only real mover.
Euro/dollar has been stuck in a narrow range for several
weeks now. Investors expect the Federal Reserve to cut interest
rates at the end of this month and the European Central Bank to
follow with more easing in 2019.
The euro EUR=EBS was up 0.08% at $1.1282, still within the
recent range of $1.14 to $1.11.
And index that tracks the dollar against a basket of six
other major currencies .DXY was flat at 96.81.
Investors are more bearish on the euro given that Treasury
yields look set to remain one of the highest in developed
markets despite future Fed rate cuts, analysts say.
However, the euro "should recover somewhat as it looks to me
like the eurozone economy and expectations are bottoming," said
Marshall Gittler, chief strategist at ACLS Global.
Speculators have added short positions against the dollar in
the week to July 9, while more leveraged funds bought dollars,
according to U.S. Commodity Futures Trading Commission (CFTC)
data. Net long dollar positions rose for the first time in seven
weeks, based on calculations by Reuters and CFTC.
Some analysts are surprised that the euro is not gaining as
the market prices in Fed easing.
"For the world's most-traded and least-exciting currency
pair, a dovish Fed, a weak-dollar President and a hint of global
economic optimism, 'ought' to mean EUR/USD rallies. If it can't
stage a move back to 1.14 in the next week or two, what on earth
could make it rally?" said Kit Juckes, FX strategist at Societe
Generale.
Elsewhere, the Australian dollar reached a 10-day high on
stronger-than-expected economic data from China, which some
analysts saw as signalling that moves to revive spending in the
world's second-biggest economy are working.
China's industrial output rebounded in June from a 17-year
low in May. June retail sales surged 9.8% from a year earlier.
The Chinese economy grew at the slowest rate in
nearly 30 years, though this was expected.
The Aussie AUD=D3 gained 0.2% to $0.7035 against the U.S.
dollar, its highest since July 4.
China's offshore yuan was up at 6.8740 yuan per dollar
CNH=EBS .
Sterling was lower by 0.1% at $1.2565 GBP=D3 and 89.72
pence against the euro EURGBP=D3 .
The Swiss franc was unchanged at 1.1093 francs per euro,
near a three-week high EURCHF=EBS .