* G3 currencies flat after tightly range-bound session
* Aussie holds firm near 93c in lead up to RBA meeting
* Outcome of RBA policy review due 0430 GMT
By Ian Chua
SYDNEY, May 6 The dollar was subdued in Asia on
Tuesday, holding largely around where it began this week after
an aimless session overnight with holidays in Japan and Britain
crimping activity in markets.
The dollar index was steady at 79.501, having drifted
in a very slim 79.433 and 79.527 range on Monday. This stood in
sharp contrast to Friday's volatile session when the index
jumped to 79.852 in reaction to upbeat payrolls data, only to
then reverse all of that.
The euro stood at $1.3875, having moved in a tight
$1.3864-$1.3887 range. Against the yen, the greenback was little
changed at 102.15 as was the euro at 141.71.
Dollar sentiment got a fillip after the Institute for Supply
Management said its services sector index rose to 55.2 in April,
the fastest pace in eight months and handily beating forecasts.
A reading above 50 indicates expansion.
The data added to recent signs that the U.S. economy is
emerging from a harsh winter-induced slowdown and provided a
welcome offset to worries about China.
Trading in Asia is likely to stay subdued with Japan still
closed for a public holiday and given an absence of
market-moving economic data.
That should leave the focus squarely on the outcome of
Australia's central bank policy meeting at 0430 GMT.
The Reserve Bank of Australia (RBA) is considered almost
certain to leave its cash rate unchanged at 2.5 percent and
maintain a steady policy outlook.
Many, however, will be looking for any commentary on the
level of the Australian dollar, which has remained stubbornly
The Aussie was last at $0.9276, holding above
support at $0.9250, a level that has provided a floor for the
currency since its gradual decline from a five-month peak of
$0.9461 on April 10.
"The AUD has held firm heading into the RBA meeting today.
We expect it to leave the cash rate unchanged and repeat its
forward guidance for a period of stable rates," Barclays Capital
analysts wrote in a note to clients.
(Editing by Shri Navaratnam)