* ECB lending data tempers prospects for further ECB easing
* Loonie firms with Canada elections out of the way, BOC awaited
* Kiwi hits 1-week low as milk prices slip
By Shinichi Saoshiro
TOKYO, Oct 21 (Reuters) - The euro firmed against the dollar early on Wednesday after solid euro zone data tempered prospects of the European Central Bank delivering additional stimulus before year-end.
ECB data on Tuesday showed euro zone banks had loosened their lending standards more than expected over the last few months despite the recent global market volatility.
That lessened the need for the ECB to ramp up its 1 trillion euro ($1.14 trillion) asset purchase programme, pushing up German bond yields and putting a floor under the recently shaky euro.
Additionally, current account data from the euro zone showed brisk portfolio inflows, a factor that has propped up the common currency in recent months. ECONEZ
The euro rose 0.1 percent to $1.1353 EUR= , adding to Tuesday's modest gains after it had struck a 10-day trough of $1.1306 at the start of the week.
Comments from an ECB policymaker earlier in the week had raised expectations that the central bank would open the door for further easing steps.
Analysts believe the euro is still prone to volatility ahead of the ECB's policy meeting on Thursday. While the ECB may not ease this month, markets remain guarded over the possibility of the central bank hinting of more stimulus steps later this year.
"Although the ECB is widely expected to stand pat on policy on Thursday, the euro risks weakening again on persisting worries about further easing," said Masafumi Yamamoto, a senior strategist at Monex in Tokyo.
The dollar was little changed at 119.80 yen JPY= after edging up 0.3 percent overnight in range-bound trading.
The Canadian dollar steadied as the conclusion of Canada's elections, in which Liberal leader Justin Trudeau won a shock victory, removed an element of near-term uncertainty that had knocked the loonie prior to the votes.
Focus has now turned to the Bank of Canada's policy decision due later on Wednesday. A majority of analysts polled by Reuters see the BOC keeping interest rates unchanged.
The dollar stood little changed at C$1.2987 CAD=D4 after rising to as high as C$1.3048 on Tuesday.
The New Zealand dollar was on the defensive after a fall in international milk prices during a second auction held this month by Fonterra Co-operative Group, the world's largest dairy exporter.
The kiwi traded at $0.6753 NZD=D4 after striking a 1-week low of $0.6736.
($1 = 0.8810 euros) (Editing by Shri Navaratnam)