FOREX-Euro falls towards key $1.08 level, bleak German investor survey piles pressure

* Euro falls to near 3-year low, approaches key $1.08 level
* Australian dollar falls to one-week low after RBA minutes
* Norway's crown plummets to 19-year low vs dollar
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

(Updates prices)
By Olga Cotaga
LONDON, Feb 18 (Reuters) - The euro extended losses on
Tuesday to plumb a new three-year low against the dollar, after
a German survey showing a slump in investor confidence added to
pessimism about Europe's largest economy.
The euro has lost around 3.4% of its value against the U.S.
dollar this year, as weak manufacturing and gross domestic
product data from Germany confirm the euro zone is more
vulnerable than most economies to the impact of the coronavirus
outbreak which started in China.
The U.S. economy has proved more resilient than the rest of
the world, keeping the dollar at 4-1/2 month highs against a
basket of currencies =USD . Other safe-haven assets such as the
Swiss franc and Japanese yen have also benefited.
The euro EUR=EBS slipped 0.23% at $1.08125, touching the
lowest since April 2017 and on the cusp of falling below the
psychologically key $1.08 level, last breached on April 21,
2017.
Germany's ZEW research institute said in its monthly survey
that investors' mood had deteriorated far more than expected in
February, on worries coronavirus would dampen world trade
"Breaking the $1.0800 level seems to be a question of when
rather than if," Petr Krpata, chief currency strategist at ING,
said.
"The mix of soft euro zone data, the market pricing renewed
ECB deposit rate cuts and attractive euro funding
characteristics do not bode well" for the euro, he added.
The euro slipped also against the Swiss franc, taking it to
within sight of the 4-1/2-year low plumbed last week EURCHF=
while it also weakened half a percent versus the British pound
to a two-month trough of 82.92 pence EURGBP=D3 .
Poor euro area data has raised concerns monetary policy will
remain looser for longer than previously expected. Minutes from
the Reserve Bank of Australia's (RBA) first meeting of the year
similarly fuelled expectations of lower interest rates and
weighed on the currency.
The RBA left rates at a record low 0.75% at that meeting,
but the minutes showed it was prepared to ease policy further.
The Aussie fell 0.5% to 0.6674 versus the
greenback, an eight-day low AUD=D3 . It is also buffeted by the
coronavirus due to Australia's trade ties with China.
"If it weren't for the virus, the incredibly cheap Aussie
dollar would be definitely worth buying," said Marc-André
Fongern, head of FX research at Fongern Global Forex.
"However, investors should exercise patience as the
Australian economy looks set to face further downward pressure."
China's ofshore-traded yuan fell 0.3% to an eight-day low of
7.0110 against the dollar CNH=EBS . A study showed that almost
twice as many Chinese medical workers have been infected by
coronavirus as officially reported
Norway's crown, closely correlated with global growth and
trade, plunged to a 19-year low of 9.3365 against the U.S.
dollar. NOK=D3 , down 0.7% on the day.