* Euro flat on day at $1.4288
* Yen rises 0.3 percent vs dollar, up 0.4 percent vs euro
* EZ July inflation falls slightly more than first estimate
* Aussie dollar hits 11-month high vs U.S. dollar
(Adds quote, updates prices)
By Tamawa Desai
LONDON, Aug 14 (Reuters) - The euro was flat against the dollar on Friday while the yen benefitted from a pullback in risk-taking after Asian share prices tanked.
Risk appetite was subdued in quiet trade as U.S. stock futures came under selling pressure after Chinese shares fell 3 percent to their lowest close in six weeks.
"As key risk events have not passed, there is scope for a correction in risk assets," said Lee Hardman, currency economist at Bank of Tokyo-Mitsubishi UFJ.
The U.S. Federal Reserve said on Wednesday it would keep interest rates low for an extended time while opting to phase out its Treasury buying programme.
By 1122 GMT, the euro was flat at $1.4288, after hitting a session high of $1.4303. Analysts say a recent high of $1.4448 would likely remain firm resistance.
Markets showed little reaction to a 0.7 percent fall on the year in euro zone inflation in July, compared with an initial estimate of -0.6 percent.
That came after data the previous day showed the French and German economies both unexpectedly grew on the quarter in April-June.
The dollar was down 0.3 percent at 95.04 yen. It was on track for a 2.7 percent fall on the week. The euro fell 0.4 percent to 135.80 yen, and was also seen down nearly two percent for the week.
The yen's gains were also attributed to potential fund repatriation by Japanese investors related to some $57.5 billion in redemptions and coupon payments on U.S. Treasuries next week, BTM-UFJ's Hardman said.
The Australian dollar hit an 11-month high against the U.S. dollar of $0.8479 earlier in the day after Reserve Bank of Australia Governor Glenn Stevens said that a normal interest rate would be well above the current rate of 3 percent.
It was last trading flat on the day at $0.8428.
Market players awaited readings of U.S. consumer price index, industrial production and consumer sentiment later in the day to better gauge whether the economy is improving.
A stronger-than-expected reading in industrial output "is unlikely to be quite as positive for the dollar as the payrolls surprise" but could support risky assets and currencies, said analysts at Barclays Capital in a note. (Additional reporting by Naomi Tajitsu; Editing by Victoria Main)