* Dollar falls vs euro after jump in housing data
* Euro zone PPI down 1.3 pct, German retail sales fall
* Bank of Japan announces stimulus plan
* Aussie dollar higher after RBA cuts rates 100 bps
(Recasts, adds comments, updates prices)
By Vivianne Rodrigues
NEW YORK, Feb 3 (Reuters) - The dollar fell against the euro on Tuesday after an unexpected jump in U.S. pending home sales in December, easing demand for the greenback as a haven.
But gains in the euro were limited as many in the market stayed sidelined before the European Central Bank's rate decision on Thursday when it is widely expected to leave interest rates on hold at 2 percent.
An announcement by the Bank of Japan of a plan to buy up to 1 trillion yen ($11 billion) in listed shares held by Japanese banks also helped boost sentiment earlier, but its impact may be limited, analysts said.
The housing report "is a real shot in the arm for (risk) sentiment," said Brian Dolan, chief currency strategist at Forex.com, in Bedminster, New Jersey. "Stocks are rallying."
In late morning trading in New York, the euro was up 1 percent against the dollar
The dollar was 0.3 percent lower at 89.14 yen
Pending sales of existing U.S. home rebounded in December as buyers took advantage of lower prices and mortgage interest rates. The National Association of Realtors Pending Home Sales Index surged 6.3 percent in December.
U.S. stock indexes got a lift and the dollar fell also as the U.S. Federal Reserve said it extended liquidity facilities and currency swap lines with 13 central banks to keep money flowing into the banking system.
"Euro/dollar has been trading on the back of risk aversion and sentiment in the past couple of days. Any news that brings risk aversion lower and helps lift stocks at this point will hurt the dollar," said Matt Esteve, a foreign exchange trader at Tempus Consulting in Washington, D.C.
Esteve said the euro could trade as high as $1.3250 in coming weeks.
WEAK EUROPEAN DATA
In Europe, pressure will remain on the ECB to cut interest rates further in the coming months as data again pointed to waning inflationary pressures and a weakening economy.
Figures on Tuesday showed euro zone producer prices fell a bigger-than-expected 1.3 percent, while German retail sales unexpectedly fell for a third straight month in December.
The prospect of rates staying on hold, however, is helping to limit the euro's downside, analysts said.
"With limited developments ... the euro, which is slightly oversold, is likely to drift higher," Marc Chandler, a currency strategist at Brown Brothers Harriman in New York, said in a note.
The Bank of Japan share-buying plan and a deep interest rate cut in Australia also briefly helped sentiment. But lingering concerns also remain about the fiscal health of economies on the fringes of the euro zone.
Ireland announced that talks with trade unions collapsed on proposed budget cuts that would be necessary to prevent a downgrade to its sovereign ratings, though it still hopes to maintain its credit rating.
The Australian dollar posted solid gains after the Reserve Bank of Australia cut interest rates by 100 basis points to a record low 3.25 percent and the Australian government announced stimulus measures.
The Australian dollar rose by 2.8 percent against its U.S. counterpart to $0.6491
(Additional reporting by Steven C. Johnson in New York; Editing by Kenneth Barry)
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