* Euro down 0.1 percent at $1.4092 after hitting 5-mo low
* Aussie recoups loss, yen down after China growth data
* Euro zone flash PMIs seen rising
By Tamawa Desai
LONDON, Jan 21 (Reuters) - The euro was on the back foot after hitting a 5-month low against the dollar on Thursday, while the Australian dollar recouped losses after stronger-than-expected Chinese data.
China's annual gross domestic product rose 10.7 percent in the fourth quarter, while third quarter growth was revised up to 9.1 percent. Growth for the year was 8.7 percent, surpassing Beijing's 8.0 percent target.
Consumer price inflation in China rose to 1.9 percent in December on year from 0.6 percent the previous month.
That raised speculation of further monetary tightening after recent steps by China's central bank to rein in liquidity. On Thursday, it guided rates on 3-month bills higher.
By 0822 GMT, the euro was flat on the day at $1.4093, recouping some losses after hitting a five-month low of $1.4067 on trading platform EBS.
Some traders said the market took profits on long euro positions after the Chinese data.
Analysts said the euro remained vulnerable on concerns about the fiscal health of euro zone peripheral economies, especially Greece.
"Momentum is now on the side of the euro bears and it is difficult to see this ending anytime soon," said Stuart Bennett, currency strategist at Calyon.
Data on Thursday showing economic improvement in the euro zone is seen having limited impact, analysts said. The manufacturing index for the Purchasing Managers' Index is forecast to have risen to 51.8 from 51.6 and the services index is set to climb to 53.9 from 53.7.
The Chinese data benefited the Australian dollar but hurt the yen, which fell broadly.
"What China is trying to do by taking tightening steps is to maintain control of a fast-growing economy. People may be inclined to adjust their positions in risky assets but not reverse them because of it," a trader for a U.S. bank in Tokyo said.
China is Australia's top trading partner, making the Aussie sensitive to growth expectations for China.
The Aussie rose 0.4 percent to $0.9131 after falling as low as $0.9097. It rose 0.7 percent against the yen to 83.59 yen after hitting a low of 82.75 yen.
The U.S. dollar rose 0.4 percent to 91.65 yen following Tuesday's bullish reversal from support in the 90.35 yen area. A break above 92.00/05 is necessary to improve sentiment, traders said.
The dollar index was up 0.2 percent at 78.538, near a peak of 78.532, its highest since early September and close to its 200-day moving average at 78.515.
Traders will watch earning results from Goldman Sachs and Google. For data, weekly U.S. jobless claims and the Philadelphia Federal Reserve's survey on factory activity are also due out later in the day.
(Additional reporting by Kaori Kaneko in Tokyo)