FOREX-Dollar firm as caution on economic re-start returns

* Risk rally runs out of steam
* AUD, NZD slip; CAD weighed by soft oil price
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Tom Westbrook
SINGAPORE, April 20 (Reuters) - The dollar found support on
Monday and a rally in riskier currencies lost steam, as
investors braced for more dire news on the fallout from the
coronavirus and governments across the globe moved only
cautiously toward an economic re-start.
Major currencies were mostly rangebound, though the
risk-sensitive Australian and New Zealand dollars and the
oil-sensitive Canadian dollar led losses with falls of around
0.3%.
Oil, U.S. stock futures and Asian equities were also softer
as caution took hold after two weeks of looking on the bright
side. MKTS/GLOB
"Hurdles facing optimists are very substantial," said Sean
Callow, Westpac FX analyst in Sydney.
"We're three weeks into a quarter that globally looks as
though it's going to be the worst in many decade. For us, while
the momentum may be with risk appetite for a little bit longer,
we think its very fragile and has to pull back very soon."
The Australian dollar AUD=D3 sat a cent lower than a
one-month high hit last week at $0.6344. The New Zealand dollar
NZD=D3 was also on the back foot, but held at $0.6013 after
stronger-than-expected first-quarter inflation. Investors' preference for the dollar as a safe harbour also
pushed euro, pound and yen a little lower. The euro EUR= was
about 0.2% softer at $1.0858 and the pound GBP= retreated to
$1.2477. The dollar rose 0.2% to 107.77 Japanese yen JPY= .
The week ahead brings U.S. monthly employment figures,
eurozone survey indicators and quarterly growth in world-trade
bellwether South Korea. None are likely to be easy reading.
The week is also crucial to the COVID-19 recovery as
governments around the world make tentative steps toward easing
lockdowns.
In the United States, where the death toll rose to more than
40,000 on Sunday, state governors have sparred with President
Donald Trump over virus testing capacity and how quickly their
economies can re-open. Investors are also closely watching an announcement due in
New Zealand at 0400 GMT as to whether its tough but
curve-squashing restrictions are to be loosened or extended.
Britain is not considering lifting its lockdown, a senior
minister said on Sunday, while leaders in Ireland and Canada
have flagged long-lasting social distancing rules. "We are coming into the eye of the storm," said Chris
Weston, head of research at brokerage Pepperstone in Melbourne.
"And as the market starts to focus less on virus headlines,
or at least will be less sensitive to better news, we will focus
more on the lasting effects on the economy and solvency."
China, which has suffered its first quarterly growth
contraction since quarterly records began, is expected to cut
its benchmark lending rate later on Monday. The yuan was steady at 7.0711 per dollar in offshore trade
CNH= . CNY/