* Dollar index nudged off 12-day high
* Yellen speech eyed after hawkish comments from Fed officials
* Yen underperforms amid prospects of more stimulus (Updates prices, adds details and quotes)
By Ian Chua and Shinichi Saoshiro
SYDNEY/TOKYO, March 29 (Reuters) - The dollar sagged against a basket of currencies on Tuesday after disappointing U.S. economic data pushed it away from a 12-day peak.
The dollar index .DXY was little changed at 96.020 after sliding on Monday from 96.399, its highest since March 16. The euro was steady at $1.1194 EUR= after gaining about 0.3 percent overnight to snap a six-day losing streak.
Sellers took aim at the greenback after soft U.S. consumer spending prompted economists to cut their first-quarter gross domestic product growth estimates. the Atlanta Federal Reserve's GDPNow forecast model on Monday showed the U.S. economy growing at below an annualised 1 percent in the first quarter, down from 1.4 percent in the fourth quarter. disappointing outcome dimmed prospects for an imminent hike in U.S. interest rates, which some Federal Reserve officials last week said could be as early as next month if the economy maintained its momentum.
The yen, on the other hand, underperformed the defensive greenback.
Traders said speculation of more monetary stimulus and talk that Japanese Prime Minister Shinzo Abe will delay an unpopular sales tax hike and call a snap election appeared to be keeping the yen under pressure. the market may have mostly priced in the prospect of the sales tax hike delay, it remains wary of fresh stimulus talk. Friday's BOJ tankan bears watching as weak results could fuel hopes for more stimulus," said Masashi Murata, senior currency strategist at Brown Brothers Harriman in Tokyo.
Economists polled by Reuters expect the Bank of Japan's quarterly tankan business sentiment survey to show a deterioration in business sentiment due to a stronger yen and concerns over the global economy. dollar hovered near 113.69 yen JPY= struck overnight, its highest since March 16, and the euro reached a two-week high of 127.15 EURJPY=R .
Whether the outlook on the U.S. dollar - which turned firmer last week in large part due to a series of hawkish comments from Fed officials - continues will depend on what Fed Chair Janet Yellen says at a speech to the Economic Club of New York. She is due to speak on the economic outlook and monetary policy at 1620 GMT on Tuesday.
"In the U.S., the biggest question remains the timing and magnitude of Fed rate hikes. In the last few days alone it feels like the case has swung from supporting the Fed's most recent dovishness to opposing it and back to supporting it again," analysts at ANZ wrote in a note to clients.
"It is a backdrop that is keeping many on their toes and makes maintaining conviction in views difficult. With Yellen speaking tonight and key data on the calendar for later in the week (ISM, payrolls), there'll be plenty to ponder."
Trading will also pick up as Europe returns from the long Easter weekend.
Buoyed by the dollar's retreat, sterling came within striking distance of $1.4300 GBP=D4 , pulling away from last week's trough of $1.4056, while commodity currencies such as the Canadian and Australian dollars CAD=D4 AUD=DR also rose.
The Aussie was last at $0.7553 AUD=D4 , following a 0.5 percent gain on Monday.
(Editing by Eric Meijer and Jacqueline Wong)