* Cross/yen pairs down broadly on profit-taking
* China Q2 GDP up 7.9 pct, matches figure in newspaper report
* Some caution after US lender CIT's talks with govt end
* But CIT's woes seen unlikely to spark strong risk aversion
* US corporate earnings seen supporting risk appetite
By Masayuki Kitano
TOKYO, July 16 (Reuters) - The euro fell against the yen on Thursday as traders booked profits after its rally this week, which was fuelled by strong U.S. corporate earnings that tempered concerns about the economy's outlook.
The currency market took in stride data showing that China's economy grew 7.9 percent in the second quarter from a year earlier. That was slightly above market expectations but matched a figure reported by a Chinese newspaper.
The yen rose broadly, with the euro slipping 0.4 percent to 132.36 yen and the Australian dollar falling 0.7 percent to 75.15 yen.
But given the rebound in U.S. and global shares this week on the back of better-than-expected results from U.S. firms such as Intel Corp and Goldman Sachs, traders said risk-taking may pick up and drag the yen lower on crosses.
"Optimism is starting to appear again following U.S. corporate earnings including a strong result from Intel," said a trader at a European bank.
"If the market gets past more U.S. earnings announcements that are on the way, and they are not too bad, yen crosses and equities could find solid footing," the trader said.
The low-yielding yen and the safe-haven dollar both tend to suffer when optimism about the outlook for the global economy improves, bolstering hopes that investors will start investing in higher-yielding currencies and assets. The dollar dipped 0.1 percent to 94.10 yen, but was well off a 5-month low of 91.73 yen hit on trading platform EBS earlier this week.
The euro dipped 0.3 percent to $1.4070.
There was some focus on the financial woes of CIT Group Inc, a major lender to small- and mid-sized U.S. businesses. CIT, which ended March with $75.7 billion of assets, said talks with the government to bail out the company had ended.
CNBC said CIT was likely to file for bankruptcy on Friday, citing a source close to the company.
"It is possible that financial markets could move a bit towards avoiding risk-taking," said Tohru Sasaki, chief foreign exchange strategist at JPMorgan Chase Bank in Tokyo.
But market players said CIT's troubles were unlikely to lead to jitters about the health of the broader financial sector, and that a sharp shift toward risk aversion was unlikely.
Overall, risk-taking seemed to be picking up, they said.
"I think there could be a little more of an unwinding of active risk-taking moves, but the recovery trade seems to be coming back again," said Sasaki at JPMorgan Chase, although he also added that it was necessary to heed downside risks. (Editing by Joseph Radford)