* Kiwi dollar falls after touching 4 1/2-month high
* US dollar rises versus commodity currencies
* Japanese yen rises to one-week high
* Norwegian crown falls from previous day's three-month
highs
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Recasts, adds new comment, updates prices, adds news on
Australia and China)
By Olga Cotaga
LONDON, June 9 (Reuters) - Most G10 currencies fell on
Tuesday as investors took profits from the risk-on mood seen in
the markets in the past weeks and the U.S. dollar found some
footing, rising against commodity currencies for the first time
in June.
The latest cause for exuberance, which drove 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 two-day meeting starting later in the day.
"All the things that have done exceptionally well since
March 23 when the Fed made all financial markets rise again are
in reversal today, and the one currency that has gone down
against the dollar since then was the yen," and now the yen is
reversing, said Kit Juckes, macro strategist at Societe
Generale.
"We've had two and a half months of rocking risk-on that's
taken equities market further than anybody would have expected
and we're having a big co-ordinated joined-up pause ahead of the
Fed meeting," Juckes said.
The Australian dollar fell nearly 2% on Tuesday after
China's education ministry China on Tuesday urged students going
overseas to think carefully before choosing Australia, citing
racist incidents targeting Asians during the COVID-19 pandemic
and putting A$12 billion ($8.3 billion) of fee revenue at risk.
"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, and yet the Australian dollar
managed to push up to 70."
"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 was last down 1.2% to 0.6930
after falling nearly 2% to 0.6899 - a five-day low. Earlier in
the Asian trading session, it rose to an 11-month high of
0.7043. The New Zealand dollar NZD=D4 fell 1% to 0.6494, off
the four-and-a-half-month high touched earlier.
An increase in employment caught markets by surprise and
together with a smaller-than-expected fall in Chinese exports
last month pushed the trade-sensitive Aussie and kiwi to
milestone highs. Even after dipping on Tuesday, the kiwi is up
about 5% on the dollar this month and the Aussie about 4%.
The Japanese yen rose to a one-week high of 107.78 and was
last trading up 0.3% JPY=EBS .
"If you're a fund manager and you were long assets of one
kind ... there's sound reasons for thinking why wouldn't I own
some yen here, some dollar/yen puts, what's my smart trade to
hedge something," said SocGen's Juckes.
"When all the dust settles, whatever happens, Japanification
just goes on and how can I have a cheap yen in that world," he
said, referring to interest rates across the world falling and
converging with rates in Japan.
Some analysts in Asia thought the yen rose as investors
positioned for the likelihood that the Fed will take steps to
flatten the Treasury yield curve this week. A
statement from the Fed is due at 1800 GMT on Wednesday.
The euro fell 0.2% to $1.1277 EUR=EBS .
Elsewhere, the Norwegian crown fell 0.9% versus the U.S.
dollar to 9.3450 NOK=D3 and 0.8% versus the euro to 10.5375
EURNOK=D3 , off the three-month highs it touched the day
before.
The Canadian dollar fell 0.6% to $1.3457 CAD=D3 .
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