FOREX-Dollar in tight range ahead of U.S. services sector data

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Dollar/yen hugs narrow trading range
* Economic data may give some spark to dollar, euro
* Coronavirus infections remain a threat to currencies
* Aussie in focus before Reserve Bank of Australia meeting

By Stanley White
TOKYO, July 6 (Reuters) - The dollar held steady against
most currencies on Monday as investors awaited data expected to
show the U.S. services sector stopped contracting, and
highlighting the economic recovery from the coronavirus
pandemic.
The euro moved in a narrow range before economic data from
Germany and the eurozone that are also forecast to show a sharp
rebound in corporate activity and retail sales, which would ease
concerns about the economic outlook.
A steady rise of new coronavirus infections in the United
States has discouraged some investors from taking on excessive
risk, but most market participants remain focused on the growing
likelihood that major economies will continue to recover.
"When it comes to dollar/yen, recovery expectations are
supporting the dollar, but worries about the virus are capping
the upside," said Masafumi Yamamoto, chief currency strategist
at Mizuho Securities.
"The markets are focused on other currency pairs, like the
Australian dollar, which is still in a clear uptrend against the
U.S. dollar due to the rise in copper prices."
The dollar held steady at 107.56 yen JPY=D3 on Monday in
Asia following a 0.3% gain last week. Market activity was
subdued following the July 4 long weekend holiday in the United
States.
The euro EUR=D3 changed hands at $1.1247. Against the
British pound, the common currency bought 90.18 pence
EURGBP=D3 .
Sterling GBP=D3 moved in a narrow range at $1.2474.
Against the Swiss franc, the dollar CHF=D3 was quoted at
0.9455.
The Institute for Supply Management's index for
non-manufacturing activity due later on Monday is expected to
rise to 50.0 in June from 45.4 in the previous month, indicating
activity stopped shrinking.
The greenback has been locked into narrow trading ranges
recently as concerns about a resurgence in U.S. coronavirus
infections offset growing optimism about the economy.
The euro will come into focus later in the trading day as
Germany, the euro zone's largest economy, is scheduled to
release industrial orders for May.
Retail sales for all of the eurozone will also be released
later on Monday. Both indicators are forecast to recover
strongly from large declines caused by the spread of the
coronavirus.
Elsewhere in currencies, the Australian dollar AUD=D3
traded at $0.6944 on Monday in Asia following a 1.2% gain last
week.
The Aussie is another market focus ahead of a Reserve Bank
of Australia (RBA) policy meeting on Tuesday. Analysts expect
that rates will stay at 0.25% amid signs that Australia's
economic downturn will not be as dire as first feared.
Recent gains in prices of copper and other commodities that
Australia exports, combined with a more positive tone for the
RBA, are likely to support the Aussie, analysts say.
Across the Tasman Sea, the New Zealand dollar NZD=D3 was
quoted at $0.6535.