* Yellen awaited for markets to gauge her thinking on rates
* Aussie inches up on slightly stronger-than-expected China GDP
* Sterling outperforms peers as BOE stirs up rate hike view
* BOJ stands pat on policy as expected, yen steady vs dollar (New throughout, changes dateline from previous TOKYO/SYDNEY)
By Patrick Graham
LONDON, July 15 (Reuters) - The Australian dollar tiptoed close to its highest in two weeks on otherwise quiet major currency markets on Wednesday, supported by stronger data out of China as traders awaited a speech by U.S. Federal Reserve chair Janet Yellen.
Sterling, a major outperformer on Tuesday after Bank of England officials spoke of the growing likelihood of interest rate hikes, also inched up to its highest this month against the dollar, euro and yen. EURGBP= GBP= GBPJPY=
The euro was unchanged against the dollar at $1.1012 EUR= , in the middle of a range it has held since the end of April.
The single currency has seemed largely impervious to the prospect of a Greek departure from the club, or progress towards keeping it in, and U.S. data and concern over China's financial stability and growth have been clearer drivers for markets.
After a poor batch of U.S. retail numbers on Tuesday, Chinese gross domestic product data showed the economy expanded by 7 percent, more than expected, in the second quarter. Factory output also hit a five-month high.
"Potentially China is still a bigger risk over the coming period than Greece has been," said Ian Stannard, Head of European FX Strategy with Morgan Stanley in London.
"It does need to be watched but at the moment that 7 percent print is going to give the market some comfort. In the margins that has helped currencies like the Aussie today."
Chinese stock markets, a focus of concern over the past month, shrugged off the data to fall another 3 percent. The Aussie, often used as a liquid proxy for bets on China, was up 0.2 percent at $0.7464 AUD=D4 .
The dollar, which in March paused in its months-long march higher, could take fresh strength from a U.S. Congressional appearance by Federal Reserve Chair Janet Yellen later in the session.
Yellen said on Friday she expected a rise in interest rates at some point this year, and investors will have a chance to hear her latest thinking at the semi-annual testimony.
The dollar was steady at 123.43 yen JPY= , hovering close to a two-week high of 123.74 scaled overnight but largely unmoved by the Bank of Japan's trimming of its growth forecast and comments from BoJ Governor Kuroda afterwards.
"A bland warning (from Yellen) that rates will have to go up eventually is probably neutral for FX markets," strategists from French bank Societe Generale said in a morning note.
"Anything more dovish than that and equities will be on a roll, the dollar softer in the process. Our economists look for a hawkish bias, which would be a surprise to the market after yesterday's data."
(Editing by Hugh Lawson)