* US dollar rises versus commodity currencies
* Japanese yen rises to 1-week high as traders await Fed
meeting
* Norwegian crown falls off previous day's 3-month highs
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Olga Cotaga
LONDON, June 9 (Reuters) - The Australian dollar fell nearly
2% on Tuesday after China's education ministry warned students
to carefully consider studying there amid tension between the
trading partners.
The dollar found some footing, rising against tearaway
commodity currencies for the first time in June as investors
paused to take profits from the risk-on mood seen in the markets
in the past two weeks.
The latest round of exuberance, which continues to drive
stock markets higher, was last week's U.S. jobs data for May.
However, a stronger Japanese yen pointed to trepidation over
the U.S. Federal Reserve's next move at its two-day meeting
starting later in the day.
"What surprised me is how the Australian dollar ignored up
until now the deterioration of the relationship between Beijing
and Australia," said Jane Foley, senior currency strategist at
Rabobank.
"There's been quite a few comments from China to Australia
over the last few weeks and yet the Australian dollar managed to
push up to 70," she added.
"I suspect that one of the reasons that it fell back today
was, yes it was the comments, but I think the market was sensing
that the Australian dollar was also quite overbought around
those levels."
The Australian dollar AUD=D4 fell 1.7% to 0.6899 - a
five-day low - after rising to an 11-month high of 0.7043 in the
Asian trading session. The New Zealand dollar NZD=D4 followed
suit and fell 1.3% to 0.6469, off the 4-1/2-month high.
An increase in employment caught markets by surprise and
together with a smaller-than-expected fall in Chinese exports
last month, had pushed the trade-sensitive Aussie and kiwi to
milestone highs.
Even after dipping on Tuesday, the kiwi is up 4.5% on the
dollar this month and the Aussie 3.7%. In New Zealand, an ANZ
survey of traffic movement - seen as a forward indicator of
economic growth - saw a sharp rebound in heavy vehicle traffic
last month.
The virus also appears to be in retreat in Australia where
re-opening is gathering pace, prompting RBC Capital Markets to
make a modest improvement in its 2020 GDP forecast on Monday
lifting it to better than -4% from -4.5%.
The Japanese yen rose to a one-week high of 107.79 and was
last trading up 0.5% at 107.90 JPY=EBS .
"Japanese names have been very active since Monday in
dollar/yen, trying to trade off the chance of some kind of
yield-curve control from the Fed," said Yukio Ishizuki, foreign
exchange strategist at Daiwa Securities in Tokyo.
"I personally don't think yield curve control is necessary
now, but the dollar is under clear selling pressure."
The euro fell 0.3% to $1.1258 EUR=EBS .
A statement from the Fed is due at 1800 GMT on Wednesday.
It is not expected to change interest rate settings though
in recent days futures pricing shows investors have abandoned
expectations of rates dipping below zero next year. Elsewhere, the Norwegian crown fell 1.7% versus the U.S.
dollar to 9.4230 NOK=D3 and more than 1% versus the euro to
10.5980 EURNOK=D3 , jumping off the three-month highs it
touched the day before.
The Canadian dollar fell 0.7% to $1.3484 CAD=D3 .
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