(Updates prices, adds euro zone sentiment)
* China warns U.S. over Hong Kong law
* Risk-off mood; yen up; Aussie down
* Quiet day expected due to U.S. holiday
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Elizabeth Howcroft
LONDON, Nov 28 (Reuters) - The dollar was little changed in
London trading on Thursday as a mild overnight risk-off move,
sparked by the United States and China clashing over Hong Kong,
subsided.
China warned the United States that it would take "firm
counter measures" in response to U.S. legislation backing
anti-government protesters in Hong Kong, and said attempts to
interfere in the Chinese-ruled city were "doomed to fail".
However, risk appetite started to return in London trading
in the absence of signs that the negotiations for a "phase one"
trade deal between the United States and China had been
jeopardised.
The dollar index .DXY was last up less than 0.1%, trading
within narrow ranges, while the Japanese yen - a perceived safe
haven - was up around 0.1% versus the dollar JPY=EBS .
The Swiss franc was up less than 0.1% versus the dollar
CHF=EBS .
"The moves have been quite modest because we're still
waiting to see what China's response is - what they've said so
far is quite vague," said Adam Cole, chief currency strategist
at RBC Capital Markets.
"They've not gone so far as to say explicitly that this
threatens the phase one trade deal, which is clearly what
markets are worrying about, and for that reason the reaction so
far has been quite mild," he said.
The offshore yuan was down 0.2% versus the dollar, still
trading within the week's ranges.
The trade-exposed Australian dollar traded almost flat
against the U.S. dollar AUD=D3 , recovering from six-week lows
hit in overnight trading due to a combination of the risk-off
mood and weak domestic data. Record-low volatility and the U.S. Thanksgiving holiday mean
traders are expecting a quiet day in markets.
Euro zone economic sentiment rebounded more than expected in
November, with sentiment among consumers, in retail trade, and
in industry, up from the previous month, but still negative
overall. German CPI data for November is due at 1300 GMT.