* Dollar recovers after dip in Asian time
* Sterling down ahead of Brexit vote in parliament
* Aussie gyrates after RBA meeting
* Chinese FX reserves surprise with rise
* Graphic: World FX rates in 2017 tmsnrt.rs/2egbfVh
By Patrick Graham
LONDON, March 7 The dollar steadied against a
basket of currencies in early European trade on Tuesday, still
stuck below highs hit in December and January after two weeks in
which expectations for a rise in U.S. interest rates this month
The biggest movers among the G10 group of major currencies
were sterling and the Australian dollar, which gained after a
meeting of the country's Reserve Bank before handing back most
of those gains as European dealers arrived.
The peaking of a year-long surge in metals prices has seen
the Aussie fall back and it was the hardest hit of the major
currencies in last week's swift move to price in a March rise in
Federal Reserve interest rates.
Against other currencies, however, the U.S. dollar has done
less well, failing to break conclusively below $1.05 to the euro
or 112 to the yen.
"If you had told me expectations for a March hike would
reach almost 100 percent I would have said we would have been
well below $1.05," said Niels Christensen, a strategist with
Nordea in Copenhagen.
"The disappointment in that move caused more profit-taking
on Friday but I don't see the euro moving much higher from
The dollar index rose less than 0.1 percent to 101.70
by 0900 GMT. Against sterling it gained 0.2 percent to $1.2211
and traded broadly flat at 113.94 yen and $1.0580 per
Comments overnight by Trump administration trade adviser
Peter Navarro pulled attention back to concerns over the White
House's attitude to trade and the dollar as officials prepare
for G20 meetings later this month.
Navarro, who has previously said an undervalued euro gave
Germany an edge over its trading partners, said on Monday that
the $65 billion U.S. trade deficit with Germany was "one of the
most difficult" trade issues, and bilateral discussions were
needed to reduce it outside of European Union restrictions.
Trump's policy pledges on domestic spending and taxation are
generally thought to point to a stronger dollar but both the
president and a number of his officials have indicated
dissatisfaction with the current strength of the greenback.
The U.S. publishes trade balance figures on Tuesday. One
surprise during Asian time was a rise in China's currency
reserves, which had been expected to fall again sharply in
"Given negative valuations effects this suggests there
wasn't any intervention to support the yuan in February," said
Societe Generale strategist Kit Juckes. "That helps Asian
currencies for now, including the Aussie."
For Reuters Live Markets blog on European and UK stock
markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets
(editing by John Stonestreet)