* U.S.-China discord on currencies could cloud Obama's trip

* Dollar subdued as more sparring over currencies expected

* Japanese GDP data, U.S. retail numbers awaited

By Anirban Nag

SYDNEY, Nov 16 (Reuters) - The U.S. dollar drifted lower in Asia on Monday, heading into a week that is likely to see increased rhetoric on currencies from both China and visiting U.S. President Barack Obama.

The United States and China sparred over exchange rates at a meeting of Asia Pacific leaders on Sunday, a move that quashed speculation China may allow some further yuan appreciation in coordination with Obama's first trip to Beijing. [ID:nSP43459].

That could lead to some short-covering in the euro/yen pair EURJPY=R later in the session, traders said. The euro had fallen in the previous session against the Japanese currency after shorts had been initiated on the hopes that a rising yuan will take some pressure off the euro EUR=.

Market talk has been swirling that a rising yuan would lift other currencies across the region and take some of the upward pressure seen in the euro against the U.S. dollar.

"We suspect that (further) yuan appreciation would leave eurozone officials more comfortable with euro trading above $1.5000 since the region would receive an offsetting boost in competitiveness against Asian currencies," said John Kyriakopoulos, currency strategist at National Australia Bank (NAB).