* Dollar nudged off 1-week high by slide in U.S. yields
* Soft housing data, U.S.-China trade woes depress yields
* Aussie up after release of June Australia employment data
* Kiwi hovers near 3-month high
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Adds details and quotes, updates prices)
By Shinichi Saoshiro
TOKYO, July 18 (Reuters) - The dollar slipped on Thursday as
risk aversion in the broader markets pushed benchmark U.S.
yields to a nine-day low.
The dollar index .DXY versus a basket of six major
currencies was down 0.2% at 97.081.
The index had climbed to a one-week peak of 97.444 the
previous day on stronger-than-expected U.S. retail sales and a
slump in sterling.
But it edged lower as safe-haven Treasury yields fell in the
wake of weak U.S. housing market data and concerns about the
prolonged U.S.-China trade dispute.
"The dollar basically handed back earlier gains as Treasury
yields pulled back and on IMF comments, and came back to where
it was a few days ago," said Takuya Kanda, general manager at
Gaitame.Com Research Institute.
Various economic data have given conflicting signs regarding
the state of the U.S. economy, but that does not change the
bigger picture of the dollar facing downward pressure due to an
expected rate cut by the Federal Reserve later this month, Kanda
said.
The International Monetary Fund (IMF) said on Wednesday the
greenback was overvalued by 6% to 12%, based on near-term
economic fundamentals. The Fed is widely expected to lower interest rates by 25
basis points (bps) at its July 30-31 policy meeting, with some
in the market wagering on a larger 50 bps cut.
Sterling GBP=D4 was a shade higher at $1.2438. It had
stumbled to $1.2382, its lowest since April 2017 on Wednesday
amid growing risks of Britain leaving the European Union in a
no-deal Brexit, before selling abated.
The euro EUR= added to modest overnight gains and edged up
0.1% to $1.1238. The single currency's gains were limited as it
was restrained by expectations of easing from the European
Central Bank as early as next week.
The dollar was 0.2% lower at 107.730 yen JPY= , having gone
as low as 107.640, its weakest level since July 3.
The Australian dollar advanced after data on Thursday showed
the country's jobless rate remained stable and underemployment
decline in June, reducing the prospect of near-term easing by
the Reserve Bank of Australia.
The Aussie AUD=D4 was 0.3% higher at $0.7031.
"The Australian dollar drew a significant part of its
support from the June underemployment rate, which fell to 8.2%
from 8.6%," said Masafumi Yamamoto, chief forex strategist at
Mizuho Securities in Tokyo.
The underemployment rate has a higher correlation with
policy rates and wages compared to the jobless rate and is
likely to attract more attention going forward, Yamamoto said.
The New Zealand dollar NZD=D4 hovered near a three-month
peak of $0.6745 scaled overnight. The kiwi has gained more than
0.5% this week, supported by positive domestic factors such as
strong inflation.
(Editing by Jacqueline Wong & Kim Coghill)