* Aussie, kiwi drop as commodity prices fall
* Dollar index near 3 1/2-week low
* Focus on China inflation data, MAS
By Hideyuki Sano
TOKYO, Oct 14 (Reuters) - Commodity currencies were on the defensive on Wednesday, following the retreat of global equity and commodity prices on Tuesday from early October's sharp rally when disappointing Chinese import data triggered profit-taking.
The dollar also slipped slightly, hitting a 3 1/2-week low against a basket of currencies, as traders pushed back expectations of a rate hike by the U.S. Federal Reserve further into 2016.
The Aussie shed 0.4 percent in early trade to fetch $0.7211, having fallen further from Monday's two-month peak of $.07382.
Similarly, the New Zealand unit dipped to $0.6641 NZD=D4 from Monday's 2 1/2-month high of $0.6740.
A big focus in Asia is price growth data from China, which is expected to show consumer inflation easing to 1.8 percent in September from 2.0 percent in August.
"Today the focus is on inflation data in China and how Asian shares will react to that," said Osao Iizuka, chief dealer at Sumitomo Mitsui Trust Bank.
Asian shares slipped from two-month high on Tuesday under the weight of falls in oil and other commodity prices and as data showed Chinese imports fell 20 percent in September.
Another focus in Asia is the policy announcement from Singapore's central bank and the country's flash GDP estimate, due at midnight GMT.
The central bank is expected to ease its policy to support an economy that may have slipped into a recession in the third quarter for the first time since the global financial crisis.
A softer Singapore dollar has tended to depress other currencies in the region including the Australian and New Zealand dollar.
The U.S. dollar's weakness against other major currencies has not been helped by the latest comments from Fed officials.
Fed Governor Daniel Tarullo told CNBC television he does not expect the economy to be ready for a rate hike this year, while St. Louis Fed President James Bullard said an October rate rise is unlikely.
The dollar index dipped to 94.539 on Tuesday, its lowest since Sept 18 and last stood at 94.743 .DXY , flat from late U.S. levels on Tuesday but down slightly so far this week.
The yen ticked up to 119.55 yen per dollar JPY= , its highest since Oct. 2, though the currency was capped by expectations that the Bank of Japan could unleash stimulus at the end of this month.
The euro rose to $1.1411, its highest in 3 1/2 weeks on Tuesday and last stood at $1.1380 EUR= , with its Sept 18 high of $1.1460 seen as a possible target.
Sterling lost momentum after a surprise fall in British consumer prices in September further reduced expectations of a rate hike by the Bank of England.
The pound fell to $1.5245, down from a three-week high of $1.5388 hit earlier on Tuesday on the back of SABMiller's SAB.L acceptance of a cash and share offer from Anheuser-Busch InBev ABI.BR, the world's largest brewer.
The pound fell to an eight-month low of 74.93 pence per euro on Tuesday. It last stood at 74.62.