* G3 currencies little changed in quiet start to the week
* Yellen's testimony, BOJ, Chinese data, earnings feature
* Aussie dollar wary after Stevens again talks down currency
By Ian Chua
SYDNEY, July 14 The dollar, euro and yen started
trade on Monday pretty much where they closed last week with
investors awaiting pivotal events including Federal Reserve
Chair Janet Yellen's congressional testimony for fresh cues.
A policy review by the Bank of Japan on Tuesday, a batch of
Chinese economic data on Wednesday and earnings results from
major global banks this week all but ensured a nondescript start
The dollar index was steady around 80.200, a level it
has gravitated towards since recovering from a two-month low of
79.740 set on July 1. The euro bought $1.3604, having
traded on either side of $1.3600 in the past week.
Against the yen, the greenback fetched 101.37 holding
off a seven-week trough of 101.06 plumbed last Thursday. The
euro was near 138.00 yen, recovering from last week's
fall to a five-month low of 137.50.
Demand for the safe-haven yen faded on Friday as concerns
eased about the health of Portugal's largest bank and its impact
on the euro zone financial system.
Traders said dollar bulls are unlikely to get too excited
ahead of Yellen's testimony on Tuesday and Wednesday.
"If her recent public statements are any indication, expect
no discomfort from the current stance of accommodative monetary
policy," analysts at JPMorgan wrote in a note to clients.
They also expect Yellen to defend the principle that
financial stability should remain primarily in the remit of
regulators, while central banks should focus on macroeconomic
The Australian dollar, meanwhile, kept its head down after
the country's central bank chief again said the currency was too
In an interview with the Weekend Australian published late
last week, Reserve Bank of Australia Governor Glenn Stevens
reiterated that some investors may be underestimating the risk
of "a material decline" in the currency at some point.
The Aussie last traded at $0.9384, having dipped as
low as $0.9370, from Friday's late $0.9390. Similar remarks from
Glenn Stevens early this month saw the Aussie slide as far as
There are no major data out of Asia on Monday. European
Central Bank President Mario Draghi is scheduled to give an
introductory statement at the quarterly hearing before the
Committee on Economic and Monetary Affairs of the European
Parliament later in the day.
(Editing by Eric Meijer)