* Dollar finds cautious support in quiet trade
* Chinese manufacturing data eyed
* Australian dollar drifts lower ahead of anticipated rate
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Tom Westbrook
SINGAPORE, Sept 30 (Reuters) - The dollar was supported on
Monday in cautious trade as worries of an immediate widening of
the Sino-U.S. trade war eased and markets awaited the latest
Chinese manufacturing data for a glimpse into the health of the
world's second-largest economy.
The greenback was steady against most major currencies,
rising marginally against the Japanese yen JPY= to buy 107.94
yen, flat against the euro and slightly weaker on British pound,
to trade at $1.0936 per euro EUR= and $1.2292 per pound
GBP= .
The New Zealand dollar was knocked by diving business
confidence, while its Australian counterpart drifted lower as
dovish expectations build ahead of a central bank meeting on
Tuesday.
Three sources had told Reuters on Friday that the U.S.
Administration was mulling de-listing Chinese companies from
U.S. stock markets. The reports initially sent major stock indices and the
Chinese yuan slipping, but losses were pared as it became
clearer that a decision on such moves was not imminent. On
Saturday a U.S. Treasury official said such ideas were not being
contemplated "at this time".
"The tensions between the U.S. and china are certainly now
multi-dimensional," said Rodrigo Catril, senior forex strategist
at National Australia Bank in Sydney. "It's not just about trade
or buying more soy beans...it's about the structural tensions
that exist between those two countries.
"Now there is a capital war angle," he said, adding that
currency market reaction was modest, because the ideas were only
proposals.
Traders are expecting fewer trade-war headlines during the
week, Catril said, since China has a week-long holiday beginning
on Tuesday, which marks the 70th anniversary of the People's
Republic of China.
The Chinese yuan CNH= , the most sensitive to trade
tensions, trod water at 7.1361 per dollar in offshore trade
ahead of the release of Chinese factory activity surveys around
0100 GMT.
The figures are expected to show a fifth straight month of
contraction. Against a basket of currencies .DXY the dollar was flat
around 99.100. The dollar greenback firmed a little against the
Australian and New Zealand dollars. The kiwi NZD= slipped
0.2% $0.6280 after a gauge of national business confidence fell.
The Aussie AUD= edged down to $0.6764.
Financial markets 0#YIB: are now pricing in a better-than
70% chance of the Reserve Bank of Australia reducing the cash
rate for the third time this year to 0.75% at its Oct. 1 board
meeting, while most economists also expect a cut. RBAWATCH
"There is a view to sell AUD on the idea the RBA is to cut,"
said Chris Weston, head of research at brokerage Pepperstone
Group in Melbourne.
"(But) given what's priced, if the bank cut, the AUD
downside should be limited. So, the extent of any selling will
also be driven by the RBA's tone and outlook," he said.