* Dollar/yen hits 1-week low as US yields hit 1-month lows
* Euro's advance vs dollar tempered by lower bund yields
* RBA views don't point to rate hikes soon, Aussie slips
(Adds reaction to RBA policy decision)
By Shinichi Saoshiro
TOKYO, April 4 The safe-haven Japanese yen
gained broadly on Tuesday as a risk-averse mood spread through
the broader markets, while the Australian dollar retreated to a
three-week low after the country's central bank raised concerns
about domestic labour conditions.
Investor appetite for risk has been dulled this week by a
number of factors, including an anxious wait for an upcoming
meeting between U.S. President Donald trump and Chinese
President Xi Jinping and a suspected suicide bombing in St.
"The dollar is feeling pressure against the yen from an
interest rate spread point of view, with Treasury yields having
fallen to one-month lows as Wall Street despite decent data,"
said Shin Kadota, senior strategist at Barclays in Tokyo.
The dollar extended overnight losses and was down 0.4
percent at 110.440 yen after hitting 110.370, its lowest
in a week. The euro lost 0.5 percent and the Australian dollar
fell 0.7 percent against the yen.
"This is a case of negative mood prevailing over other
factors, like positive data, which would otherwise support the
dollar," said Masashi Murata, senior currency strategist at
Brown Brothers Harriman in Tokyo.
"It is difficult to pinpoint the cause of the negative mood,
but it won't go away until immediate concerns towards the Trump
administration are soothed. That might not take place until the
U.S.-China summit is out of the way."
Monday's largely positive U.S. construction spending and
manufacturing data affirmed a steady improvement in the economy,
but did little to uphold Treasury yields and the dollar.
The euro was steady at $1.0668 after rising only
about 0.2 percent overnight against the dollar, its advance
tempered by a sharp decline in German bund yields driven by
flight-to-safety following the bombings in St. Petersburg.
The Reserve Bank of Australia's decision to keep its cash
rate at a record low of 1.5 percent on Tuesday came as little
surprise. But the Aussie fell after the central bank hinted that
it was not too confident about domestic labour and inflation
The Australian dollar lost more than 0.3 percent to reach a
three-week low of $0.7578 , having declined steadily
over the past two weeks from a four-month high of $0.7750.
The pound was a shade lower at $1.2475 after
dropping 0.7 percent overnight on data showing British
manufacturing lost momentum last month, the latest sign the
economy may be running out of steam.
The 10-year Treasury note yield hovered near a
one-month low of 2.321 percent plumbed overnight.
(Reporting by Shinichi Saoshiro; Editing by Eric Meijer & Shri