* Dollar nudged off 1-week high by slide in U.S. yields
* Soft housing data, U.S.-China trade woes depress yields
* Aussie up after release of June Australia employment data
* Kiwi hovers near 3-month high
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh(Adds details and quotes, updates prices)
By Shinichi Saoshiro
TOKYO, July 18 (Reuters) - The dollar slipped on Thursday asrisk aversion in the broader markets pushed benchmark U.S.yields to a nine-day low.
The dollar index versus a basket of six majorcurrencies was down 0.2% at 97.081.
The index had climbed to a one-week peak of 97.444 theprevious day on stronger-than-expected U.S. retail sales and aslump in sterling.
But it edged lower as safe-haven Treasury yields fell in thewake of weak U.S. housing market data and concerns about theprolonged U.S.-China trade dispute.
"The dollar basically handed back earlier gains as Treasuryyields pulled back and on IMF comments, and came back to whereit was a few days ago," said Takuya Kanda, general manager atGaitame.Com Research Institute.
Various economic data have given conflicting signs regardingthe state of the U.S. economy, but that does not change thebigger picture of the dollar facing downward pressure due to anexpected rate cut by the Federal Reserve later this month, Kandasaid.
The International Monetary Fund (IMF) said on Wednesday thegreenback was overvalued by 6% to 12%, based on near-termeconomic fundamentals.
The Fed is widely expected to lower interest rates by 25basis points (bps) at its July 30-31 policy meeting, with somein the market wagering on a larger 50 bps cut.
Sterling was a shade higher at $1.2438. It hadstumbled to $1.2382, its lowest since April 2017 on Wednesdayamid growing risks of Britain leaving the European Union in ano-deal Brexit, before selling abated.
The euro added to modest overnight gains and edged up0.1% to $1.1238. The single currency's gains were limited as itwas restrained by expectations of easing from the EuropeanCentral Bank as early as next week.
The dollar was 0.2% lower at 107.730 yen, having goneas low as 107.640, its weakest level since July 3.
The Australian dollar advanced after data on Thursday showedthe country's jobless rate remained stable and underemploymentdecline in June, reducing the prospect of near-term easing bythe Reserve Bank of Australia.
The Aussie was 0.3% higher at $0.7031.
"The Australian dollar drew a significant part of itssupport from the June underemployment rate, which fell to 8.2%from 8.6%," said Masafumi Yamamoto, chief forex strategist atMizuho Securities in Tokyo.
The underemployment rate has a higher correlation withpolicy rates and wages compared to the jobless rate and islikely to attract more attention going forward, Yamamoto said.
The New Zealand dollar hovered near a three-monthpeak of $0.6745 scaled overnight. The kiwi has gained more than0.5% this week, supported by positive domestic factors such asstrong inflation.
(Editing by Jacqueline Wong & Kim Coghill)