Euro and Europe hike bets higher as inflation lingers
China data slightly beats expectations; yuan steady
Europe inflation, U.S. core PCE and consumption data ahead

SINGAPORE, Aug 31 Reuters The euro stood by a 15year high on the yen on Thursday in anticipation of sticky European inflation figures, while the dollar was squeezed ahead of consumption, inflation and jobs data that could add to evidence of a softening economy.

A marginally betterthanexpected Chinese manufacturing survey kept the yuan, Australian dollar and New Zealand dollar steady in Asia trade, though all three are set for sizeable monthly drops on worries about China39;s economic slowdown.

The Aussie traded 0.2 firmer at 0.6485 and the kiwi , down 4 for August, held at 0.5960. The yuan traded at 7.2895 per dollar for a 2 monthly loss.

The euro hovered at 1.0922, after gaining 0.4 on Wednesday when higherthanexpected inflation numbers in Germany and Spain pointed to a hit Europewide reading due on Thursday.

Traders have priced in an increased chance of a rate hike in Europe next month of about 5050, and the euro has made a new 15year high of 159.76 per yen, though analysts think further gains would need substantial improvement in the economy.

If a weaker dollar is only likely when the signs of slower growth are clear, a stronger euro is only likely when the current gloom about the economy eases, said Societe Generale strategist Kit Juckes.

Sterling , which followed the euro39;s gains likewise…