* Aussie up after RBA tones down its weak currency views
* Loonie hits 11-year lows as oil prices sink on China
worries
* Dollar holds steady vs euro, yen as commodity currencies
weaken
(Updates throughout)
By Shinichi Saoshiro and Ian Chua
TOKYO/SYDNEY, Aug 4 (Reuters) - The Australian dollar rose
on Tuesday after the Reserve Bank of Australia took a more
measured view on the currency's weakness, while the Canadian
dollar languished at 11-year lows as a continuing selloff in oil
prices thrust the loonie and other commodity currencies into the
spotlight.
The U.S. dollar saw less action in Asia and steadied against
the euro and yen, with weaker commodity currencies neutralising
disappointing U.S. manufacturing activity data released
overnight.
While the RBA left the cash rate unchanged at 2.0 percent as
widely expected, it did not make an attempt to talk down the
currency further as some in the market had braced for. urn:newsml:reuters.com:*:nRBA
The central bank had consistently said the exchange rate was
still high, particularly as commodity prices such as iron ore
have fallen even more.
"Today's announcement was more implicit than explicit and
suggests the RBA will be on hold for the foreseeable future,"
said Jasmin Argyrou, senior investment manager at Aberdeen Asset
Management.
The Aussie was up 0.8 percent at $0.7340 AUD=D4 , edging
away from a six-year trough of $0.7234 set last week.
Other commodity currencies like the Canadian dollar did not
fare as well.
In a bearish turn of events for currencies of oil exporters,
crude prices slid a further 5 percent overnight to their lowest
since January after weak factory activity in China deepened a
commodity-wide rout. ID:nL3N10E1KE
The Canadian dollar last traded at C$1.3165 per USD
CAD=D4 , after a low of C$1.3176 - a level not seen since
August 2004.
"The longer that crude takes to recover, the greater the
risk to energy capex plans for 2016 which in turn feeds into the
Bank of Canada's projections and lowers the hurdle for further
easing down the line," said Elsa Lignos, senior currency
strategist at RBC Capital Markets.
"Next resistance targets for USD/CAD are 1.3246 and 1.3383
though it will take ongoing crude weakness to maintain the
USD/CAD rally."
The Russian rouble reached a five-month low around 63.618
per USD RUBUTSTN=MCX .
In contrast, the G3 currencies marked time ahead of key U.S.
jobs data due later in the week. The dollar was steadier at
123.97 yen JPY= , while the euro dipped 0.1 percent to $1.0940
EUR= .
Dollar bulls are now counting on non-farm payrolls on Friday
to strengthen the chances of a September hike in interest rates.
"The market is not just focused on U.S. employment, but some
continue to eye wages and inflation as well," said Masashi
Murata, senior currency strategist at Brown Brothers Harriman in
Tokyo.
"I don't see the decline in commodities impacting the Fed's
rates decision, but those who do not share such a view see lower
commodities as a dollar-bearish factor," he said.
Depending on U.S. indicators released before Friday's
payrolls, "the dollar could experience some volatility," Murata
said.
The New Zealand dollar dipped 0.1 percent to $0.6560
NZD=D4 but held above a six-year low of $0.6498 plumbed last
month.