FOREX-Euro hits two-yr lows; China data awaited

* Euro falls prey to early selling as stops triggered

* U.S. jobs data weighing on risk sentiment

* China inflation data next test for markets

By Ian Chua

SYDNEY, July 9 (Reuters) - The euro plumbed a two-year low versus the greenback early on Monday, while high-beta currencies like the Australian dollar nursed losses with markets still smarting after tepid U.S. jobs growth dealt a blow to risk sentiment late last week.

Traders said investors were now waiting warily for this week's deluge of Chinese data, starting with June consumer inflation at 0130 GMT. Any disappointment could further sting risk assets.

The single currency traded as low as $1.2225 first thing this morning in thin trade as stops were triggered, bringing into view the 2010 trough around $1.1876.

It has since bounced back to $1.2269, slightly above Friday's low around $1.2260 set after the closely watched U.S. jobs data showed payrolls grew by a smaller-than-expected 80,000 in June.

Against the yen, the euro touched a one-month low at 97.50 , before edging back to 97.70.

Commodity currencies were also hit, although they escaped with relatively modest losses. The Aussie dollar was at $1.0195, having fallen 0.8 percent on Friday.

Traders said data from China, Australia's single biggest export market, will test the resolve of Aussie-dollar bulls. Chinese inflation is expected to have slowed to 2.3 percent in June, from 3.0 percent, providing scope for more easing.

More threatening could be economic data due Thursday with annual GDP growth seen slowing to around 7.5 percent in Q2, from 8.1 percent.

With the euro languishing, the dollar index remained firm at 83.383, not far off the June 1 peak of 83.542. A break there would take it back to highs not seen since mid-2010.

Analysts at BNP Paribas, however, warned that the dollar strength may be short lived.

"The jobs report in our view is QE3 friendly, but would not result in a panic for the Fed. This means that the Fed will continue to lay the groundwork for more easing in the coming months given the gloomy growth prospects," they wrote in a client note.

"Thus, heading into this upcoming week, as the market considers higher prospects of QE, risk sentiment should improve, sending the USD lower," they said. Markets will be keeping a close eye on the Fed's June minutes on July 11 for clues on further easing options, especially after it extended Operation Twist at the previous meeting.