* Dollar index dips to fresh 3-month low <.DXY>
* Aussie, kiwi dollars rise as global shares climb
* Analysts say better risk sentiment may not last
* Traders look to U.S. ISM manufacturing index
(Adds quote, updates prices)
By Neal Armstrong
LONDON, Aug 2 (Reuters) - The dollar index hit a three-month
low on Monday, hurt by worries that the U.S. economy's recovery
is losing steam, while the high-yielding Australian dollar
reached a three-month high, buoyed by a rise in equities.
The dollar has been hobbled by concerns over the U.S.
economy after recent economic data undershot market
expectations, while European data and many company results have
been stronger -- keeping investors buying riskier assets.
Robust results from HSBC <HSBA.L><0005.HK> and BNP Paribas
<BNPP.PA> helped risk sentiment on Monday, as European shares
rose close to 2 percent <>.
"It may not be a bad trade in the thinned liquidity of
summer months to trade up the European currencies which have
been rising on the strength of their economic data," said Hans
Redeker, head of FX strategy at BNP Paribas.
But analysts said the perceived better risk sentiment
outside of the United States was unlikely to be maintained if
the world's biggest economy continued to underperform.
The dollar index, which measures the greenback's value
against a basket of currencies, hit a three-month low of 81.354
<.DXY>, dipping below support near 81.44, which is roughly a 50
percent retracement of its November to June rally.
By 1055 GMT, it was at 81.389, down 0.2 percent on the day.
"We're seeing a disconnection as U.S. data stays weak yet
risk appetite is strong. Weak U.S. data will translate into risk
aversion at some point," said Tom Levinson, currency strategist
at ING.
Latest data from the Commodity Futures Trading Commission
showed the biggest accumulation of net dollar short positions
from speculators since December 2009. []
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For an overview of CFTC FX positioning data, click on
http://r.reuters.com/kus26k
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The euro was up 0.2 percent from late U.S. trading on Friday
to $1.3072 <EUR=>, near a three-month high of $1.3107 marked
last week.
Key resistance was at $1.3125, the 38.2 percent retracement
of the fall from late November to early June, while options
traders noted barriers in place at $1.3200, $1.3250 and $1.3300,
said to expire from the end of August into early September.
Sterling hit a six-month high versus the dollar <GBP=D4> of
$1.5820 and outpaced the euro <EURGBP=D4>, rising to a four-week
high of 82.64 pence.
AUSSIE RISES, YEN SLIPS
The dollar also fell against the high-yielding Australian
and New Zealand dollars, with the Aussie hitting a three-month
peak at $0.9136 <AUD=D4>. They were buoyed by gains for global
equities, which rose 0.9 percent <.MIWD00000PUS>.
China's official purchasing managers' index fell to 51.2 in
July from 52.1 in June, but still remained above the
growth-versus-contraction level of 50. []
The yen slipped broadly and pulled back a bit from an
eight-month high versus the dollar of 85.95 yen hit late last
week. It was last at up 0.3 percent to 86.75 yen <JPY=>.
Japanese finance minister Yoshihiko Noda said on Monday
excessive yen movements were undesirable because of the
currency's impact on the economy and markets, and he was
watching currency moves closely. []
The dollar was battered after data on Friday showed the U.S.
economy slowed to a 2.4 percent annual rate in the second
quarter.
Traders will look to the Institute for Supply Management's
manufacturing index due out at 1400 GMT, which is seen falling
to 54.1 in July from 56.2 the previous month.
The dollar's performance will hinge on the performance of
U.S. non-farm payrolls data due on Friday, which will set the
stage for the Fed's policy-setting meeting on Aug. 10, BNP's
Redeker said.
(Additional reporting by Tamawa Desai; Editing by Susan Fenton)
