FOREX-Dollar struggles after bounce; Aussie shines

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Saikat Chatterjee
LONDON, July 2 (Reuters) - The U.S. dollar traded near a
recent three-month low on Monday on weak manufacturing surveys,
while the Australian dollar lifted after the central bank cut
interest rates as expected but signaled a more balanced outlook.
JPMorgan's gauge of global manufacturing fell to its weakest
in almost seven years, showing a contraction in the sector for
the second month in a row, while Morgan Stanley's own surveys
showed world manufacturing shrinking for the first time since
2016.
Against a basket of its rivals .DXY , the dollar was 0.1%
lower at 96.75 and not far from a three-month low of 95.84 hit
last week with traders firmly of the view the Fed will cut
interest rates at least three times by the end of the year.
However, the dollar's losses were relatively tiny in
comparison with Monday's 0.6% bounce when global risky assets
rallied on relief of waning trade tensions between Washington
and China.
"Bigger hurdles lie ahead this week, notably ADP tomorrow
and NFP on Friday," said Kenneth Broux, a currency strategist at
Societe Generale in London referring to the jobs data later this
week.
The global investor spotlight will move to U.S. non-farm
payrolls data due on Friday, which economists expect to have
risen by 160,000 in June, compared with a 75,000 increase in
May.
The Australian dollar was the sole spot of strength in the
global currency markets as it AUD=D3 bounced 0.3% after a
central bank rate cut decision offered few clues about future
easing.
The central bank lowered interest rates by 25 basis points
to a record low of 1.00%, matching economists' expectations. In
a statement it said it would lower rates again "if needed", a
phrase some analysts took to mean an additional rate cut was
less likely than they had previously thought.
Traders attributed the currency's bounce to heavy short
positions built up in the Aussie ahead of the decision. Latest
positioning data showed short bets at a six-month high.
Elsewhere, the pound GBP=D3 was broadly steady around
$1.26 after Jeremy Hunt, a contender to replace British Prime
Minister Theresa May, said German Chancellor Angela Merkel was
willing to look at proposals for a revised Brexit deal.