* Graphic: World FX rates in 2019
* Dollar shored up following spike in Treasury yields
* But soft U.S. data limits dollar's upside
* Aussie manages to reverse part of previous day's sharp fall
By Shinichi Saoshiro
TOKYO, Feb 22 (Reuters) - The dollar held gains against its peers
early on Friday, bolstered by a rise in U.S. yields, while the Aussie
clawed back some of its recent plunge on upbeat central bank comments
and easing concerns about China's ban on Australian coal imports.
The dollar index against a basket of six major currencies was
little changed at 96.582 after edging up about 0.15 percent
overnight when long-term Treasury yields surged to a one-week high
amid on news of progress in U.S.-China trade talks.
The rise by the greenback, however, had been limited after
Thursday's soft U.S. economic data, including an unexpected fall in
core capital goods orders and weak existing home sales, which affirmed
expectations that the Federal Reserve will hold interest rates steady.
"The currency market is entering a phase when it is becoming
a little numb to political developments such as U.S.-China trade talks
and Brexit," said Takuya Kanda, general manager at Gaitame.Com Research.
"It's back to fundamentals, particularly for the dollar, with
each data release until next week's non-farm payrolls report likely to
slowly build directional cues."
The euro was 0.05 percent higher at $1.1340 and on track to
gain 0.4 percent on the week.
The dollar was effectively flat at 110.66 yen following modest
overnight losses. It was headed for a gain of roughly 0.2 percent this week.
The Australian dollar was up 0.3 percent at $0.7109 after
sliding more than 1 percent to a 10-day low the previous day on fears
a ban on the country's coal by a Chinese port would hurt Australia's
already slowing economy.
The Aussie's bounce came after the government downplayed the ban
on the country's coal by a Chinese port, Rodrigo Catril, currency
strategist at National Australia Bank said. In addition, upbeat
remarks from the country's central bank chief earlier in the day also
boosted the currency.
The pound was steady at $1.3042 after inching lower overnight.
Sterling has swung wildly between a low of $1.2895 and a high of
$1.3109 this week as British Prime Minister Theresa May tries to
persuade European Commission chief Jean-Claude Juncker to modify her
withdrawal deal and then get the tweaked agreement through the British
(Additional reporting by Swati Pandey in Sydney; Editing by Sam Holmes)
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