* US dollar rises versus commodity currencies
* Japanese yen rises to 1-week high as traders await Fed meeting
* Norwegian crown falls off previous day’s 3-month highs
* Graphic: World FX rates in 2019 tmsnrt.rs/2egbfVh
By Olga Cotaga
LONDON, June 9 (Reuters) - The Australian dollar fell nearly 2% on Tuesday after China’s education ministry warned students to carefully consider studying there amid tension between the trading partners.
The dollar found some footing, rising against tearaway commodity currencies for the first time in June as investors paused to take profits from the risk-on mood seen in the markets in the past two weeks.
The latest round of exuberance, which continues to drive 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 next move at its two-day meeting starting later in the day.
“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 weeks and yet the Australian dollar managed to push up to 70,” she added.
“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 fell 1.7% to 0.6899 - a five-day low - after rising to an 11-month high of 0.7043 in the Asian trading session. The New Zealand dollar followed suit and fell 1.3% to 0.6469, off the 4-1/2-month high.
An increase in employment caught markets by surprise and together with a smaller-than-expected fall in Chinese exports last month, had pushed the trade-sensitive Aussie and kiwi to milestone highs.
Even after dipping on Tuesday, the kiwi is up 4.5% on the dollar this month and the Aussie 3.7%. In New Zealand, an ANZ survey of traffic movement - seen as a forward indicator of economic growth - saw a sharp rebound in heavy vehicle traffic last month.
The virus also appears to be in retreat in Australia where re-opening is gathering pace, prompting RBC Capital Markets to make a modest improvement in its 2020 GDP forecast on Monday lifting it to better than -4% from -4.5%.
The Japanese yen rose to a one-week high of 107.79 and was last trading up 0.5% at 107.90.
“Japanese names have been very active since Monday in dollar/yen, trying to trade off the chance of some kind of yield-curve control from the Fed,” said Yukio Ishizuki, foreign exchange strategist at Daiwa Securities in Tokyo.
“I personally don’t think yield curve control is necessary now, but the dollar is under clear selling pressure.”
The euro fell 0.3% to $1.1258.
A statement from the Fed is due at 1800 GMT on Wednesday.
It is not expected to change interest rate settings though in recent days futures pricing shows investors have abandoned expectations of rates dipping below zero next year.
Elsewhere, the Norwegian crown fell 1.7% versus the U.S. dollar to 9.4230 and more than 1% versus the euro to 10.5980, jumping off the three-month highs it touched the day before.
The Canadian dollar fell 0.7% to $1.3484.
Reporting by Olga Cotaga in London; Additional reporting by Tom Westbrook and Stanley White in Tokyo and Singapore, editing by Ed Osmond