REFILE-FOREX-Dollar edges up as markets wait for U.S. inflation data

(Refiles to correct time zone for CPI data, removes reference
to ZEW survey)
* Dollar index edges up
* Euro, Aussie and Kiwi dollars slip
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

LONDON, April 13 (Reuters) - The dollar edged higher on
Tuesday, helped by a pick-up in U.S. Treasury yields, but was
still near three-week lows as markets waited for inflation data
in the United States.
The dollar has fallen so far in April, after surging in the
first three months of 2021 on expectations that a combination of
monetary stimulus and government spending would cause inflation
to spike.
U.S. CPI data for March is due at 1230 GMT and is expected
to show a rise in inflation to 2.4%.
Market participants will also be paying attention to how
yields react to a 30-year Treasury auction. ING strategists wrote in a note to clients that higher
inflation would support higher U.S. yields, which could in turn
cause the dollar to outperform lower-yielding currencies such as
the yen, Swiss franc and euro.
The inflation data "should further fuel the narrative that
the U.S. economy is starting to overheat and are to likely add
to concerns that the Fed's firmly dovish message will be
increasingly challenged," ING said.
At 0725 GMT, the dollar was up 0.1% against a basket of
currencies, at 92.201 =USD , moving away from recent three-week
lows.
The 10-year U.S. Treasury yield was at 1.6979% US10YT=RR
for its third consecutive day of gains, but still well below the
1.7760% level hit on March 30, which was the highest in over a
year.
"There's a widespread expectation that inflation is set to
rise in the coming months, but also a consensus for the most
part that this will be a transitory phenomenon," Deutsche Bank
strategist Jim Reid wrote in a note.
Overnight data showed China's exports rose in March, with
import growth rising to four-year highs, signalling an
improvement in global demand. Asian stock markets were broadly positive after the data,
but the boost did little to support currency markets. By early
London trading, China's offshore yuan was down 0.1% against the
dollar, changing hands at 6.5523 CNH=EBS .
The euro was down 0.1%, at $1.1895.
The Australian dollar, which is seen as a liquid proxy for
risk appetite, was down 0.2% versus the U.S. dollar at 0.7609
AUD=D3 .
On Monday, Australia abandoned its goal to vaccinate nearly
all its population by the end of 2021. The New Zealand dollar also fell, down 0.1% NZD=D3 . The
Reserve Bank of New Zealand is due to meet on Wednesday and is
expected to keep rates constant. The British pound was up 0.1% against the dollar at $1.3763.
The UK economy grew in February as companies prepared for the
lifting of the third coronavirus lockdown, gross domestic
product data showed. Elsewhere, bitcoin was up 1.6% at $60,807.77, ahead of
Coinbase Global Inc COIN.O , the largest U.S. cryptocurrency
exchange, listing on the Nasdaq on Wednesday. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates https://tmsnrt.rs/2RBWI5E
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