By Ankur Banerjee
       SINGAPORE, July 4 (Reuters) - The yen nudged up on
Tuesday but remained vulnerable to more  weakness, hovering near
the key 145 per dollar level as markets were on alert for signs
of intervention, while the Australian dollar moved up ahead of a
central bank policy decision. 
    The yen was up 0.17% at 144.42 per dollar in early
Asian hours, but remained close to last week's eight month low
of 145.07 per dollar that prompted Finance Minister Shunichi
Suzuki to warn against excessive yen selling.
     Earlier on Tuesday, Japan's top financial diplomat Masato
Kanda said that officials were in close contact with U.S.
Treasury Secretary Janet Yellen and other overseas authorities
almost everyday on currencies and broader financial markets.
    "This is sending signals that a coordinated intervention may
be coming as yen continues to hover above 144 per dollar," said
Charu Chanana, market strategist at Saxo Markets. 
    "A coordinated intervention usually has a longer lasting
impact on the yen than a unilateral intervention would have." 
    Japan bought yen in September, its first foray in the market
to boost its currency since 1998, as the Bank of Japan's pledge
to retain ultra-loose policy as long as required drove the yen
as low as 145 per dollar. It intervened again in October after
the yen plunged to a 32-year low of 151.94.
    Against a basket of currencies, the dollar eased
0.039% to 102.910 after data overnight showed U.S. manufacturing
slumped further in June, reaching levels last seen when the
nation was reeling from the initial wave of the COVID-19
pandemic.
     "We expect the U.S. economy to face a recession starting in
Q3 23," Kristina Clifton, senior currency strategist at
Commonwealth Bank of Australia, adding that it was likely to be
a quiet day for the currency market with no major data releases
or central bank speech scheduled. U.S. markets are closed for
the July 4 Independence Day holiday. 
    Investor focus this week will be on nonfarm payrolls data
along with jobs report for more clues about the broader labour
market in the United States. Minutes of the U.S. Federal
Reserve's June meeting are also due to be released on Wednesday.
    Markets are pricing in a near 87% chance of a 25 basis point
hike in the next Federal Reserve meeting at the end of the
month, the CME FedWatch tool showed. 
    
    RBA WATCH
    The focus in Asian hours will be on the policy decision from
the Reserve Bank of Australia (RBA). 
    Markets are leaning towards a pause, with swaps pricing a
63% chance of a hold in rates after data last week showed
consumer inflation slowed to a 13-month low in May. But
economists were split on the outcome, with 16 out of 31 polled
by Reuters expecting a hike and the rest forecasting the bank to
stand pat. 
    Since a surprise pause in April and subsequent hikes in May
and June, economists have been mostly divided in recent months
over the RBA's next move.
    CBA's Clifton said the slight easing in inflation in May
should please the RBA but with a tight labour market as well as
still high price pressures, a 25 bps hike would not be a
surprise. 
    "We estimate that a hike would push up Aussie modestly by
0.8% so long as the post-meeting statement was not dovish.  No
change or a dovish hike could pull AUD modestly lower." 
    The Australian dollar  was at $0.668, up 0.16%
against the U.S. dollar, while the New Zealand dollar
was also up 0.16% at $0.616.
    The euro was up 0.02% to $1.0913, while sterling
 was last at $1.2699, up 0.06% on the day.  
    
    ========================================================
    Currency bid prices at 0209 GMT
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar                  $1.0908        $1.0915     -0.04%         +1.82%      +1.0915     +1.0908
 Dollar/Yen                   144.6100       144.6900    -0.09%         +10.15%     +144.6900   +144.4500
 Euro/Yen                                                                                     
 Dollar/Swiss                 0.8965         0.8965      +0.02%         -3.03%      +0.8967     +0.8958
 Sterling/Dollar              1.2691         1.2691      +0.02%         +4.95%      +1.2701     +1.2688
 Dollar/Canadian              1.3248         1.3249      -0.01%         -2.22%      +1.3256     +1.3246
 Aussie/Dollar                0.6679         0.6671      +0.10%         -2.03%      +0.6684     +0.6670
 NZ                           0.6158         0.6152      +0.11%         -3.01%      +0.6164     +0.6154
 Dollar/Dollar                                                                                  
                                                                                                
    
All spots
Tokyo spots
Europe spots 
Volatilities 
Tokyo Forex market info from BOJ 



    
 (Reporting by Ankur Banerjee in Singapore
Editing by Shri Navaratnam)