* Euro under pressure amid political uncertainty in Portugal
* Dollar index hits fresh seven-month highs
* China industrial output and retail sales next event risk
By Ian Chua
SYDNEY, Nov 11 (Reuters) - The euro nursed broad losses early on Wednesday as political uncertainty in Portugal provided an excuse to sell in a market already bracing for further monetary policy easing from the European Central Bank.
The common currency last stood at $1.0724 EUR= , having slid below $1.0700 for the first time in over six months overnight. It fell as far as $1.0674 after breaking below Friday's trough of $1.0704.
Investors took aim at the euro after Portugal's minority government collapsed as left-wing parties ousted the ruling centre-right. It was the first such move against an elected government since the end of dictatorship in 1974.
"While political uncertainty in Portugal does not bode well for the euro, a Greece-like scenario is not in the cards. Portugal's fiscal backdrop is much more manageable than Greece's," said Elias Haddad, senor currency strategist at Commonwealth Bank.
"Rather, expectations of more ECB easing will continue to keep the euro under downside pressure."
In contrast, expectations that the Federal Reserve will hike U.S. interest rates in December for the first time in nearly a decade were keeping the greenback underpinned.
With the euro under pressure, the dollar index .DXY broke back above its post-payrolls high of 99.345 to scale a fresh seven-month peak of 99.504. It was last at 99.168.
Against the yen, the greenback fetched 123.19 JPY= , holding near a 2-1/2 month peak of 123.60 set on Monday. The euro was left flirting with 132.00 EURJPY=R , having come within a whisker of a six-month trough of 131.45 plumbed on Friday.
Commodity currencies went nowhere with both the Australian and New Zealand dollars holding near one-month lows as investors waited for another batch of economic data out of China.
Following subdued inflation data on Tuesday, the risk is that Chinese industrial output and retail sales will also disappoint.
The Aussie was at $0.7030, while its kiwi peer was at $0.6533 NZD=D4 , both were not far from their one-month lows of $0.7016 and $0.6499 respectively.
Traders said the Chinese figures will be the main focus on the global stage with little else out of Europe and the United States, which is observing Veterans Day - a partial markets holiday. (Editing by Richard Pullin)