FOREX-Euro hits 1-mth low vs dollar on ECB uncertainty

                                
 * ECB President Trichet signals small rate cut
                                
 * Trichet gives no details of unconventional steps
                                
 * Yen gains broadly as share prices fall
                                
 * Aussie retreats from a 6-month peak vs euro
                                
 By Satomi Noguchi
                                
 TOKYO, April 20 (Reuters) - The euro hit a one-month low
against the dollar and a three-week trough versus the yen on
Monday due to uncertainty over policy steps the European Central
Bank may take.
                                
 The Australian dollar earlier climbed to its highest in more
than six months against the euro but then retreated sharply after
Asian shares fell, prompting investors to reduce risky bets
including the Aussie, also pushing the yen broadly higher.
                                
 ECB President Jean-Claude Trichet signalled on Sunday during
a trip to Tokyo that the bank's next move could likely be an
interest rate cut of 25 basis points. [ID:nT138276]
                                
 But Trichet kept mum on details of plans for unconventional
policy responses that are due to be unveiled at the ECB's next
policy meeting on May 7.
                                
 Trichet also dismissed any suggestion that ECB policy makers
were divided over how far it should go and said he did not think
zero interest rates would be appropriate for the ECB.
[ID:nSP404768]
                                
 Market players are keen to see whether the ECB will follow
the Federal Reserve, the Bank of England and the Bank of Japan in
making asset purchases to contain the financial crisis.
                                
 "The euro looks set to fall further, following the same path
as the dollar, sterling and the yen did when they faced
month-long selling after their central banks adopted
unconventional measures," said Kengo Suzuki, a currency
strategist at Shinko Securities.
                                
 The euro fell as low as $1.2967 <EUR=> on the EBS trading
platform, its lowest since March 17, before recovering to
$1.3016, down 0.2 percent on the day.
                                
 "The euro is facing selling pressure because the market feels
from Trichet's recent comments that he probably wants to lower
the euro," said a manager of forex trading at a large Japanese
bank.
                                
 Trichet said on Friday that saying the euro was weak did not
reflect the current situation. The euro was trading around $1.31
at the time of his remarks. The ECB chief also said he
appreciated U.S. comments that a strong dollar was in U.S.
interests. [ID:nTKF104338]
                                
 The euro erased earlier gains against the yen and fell to a
three-week low of 128.14 yen on EBS at one point. It then traded
at 128.79 yen <EURJPY=R>, down 0.4 percent.
                                
 The dollar also shed earlier gains and was down 0.2 percent
at 98.92 yen <JPY=>.
                                
 The Australian dollar earlier climbed to its highest since
early October against the euro, as firmer U.S. stock markets and
signs of a pickup reflected in economic data late last week
supported demand for riskier assets.
                                
 But investors later quickly reduced bets on the Aussie as
regional stock markets fell, with the Nikkei average <.N225>
losing 0.2 percent partly on caution ahead of more U.S. company
reports this week including Bank of America <BAC> on Monday.
                                
 The euro fell as low as A$1.7993 before rebounding to
A$1.8085 <EURAUD=R>, up 0.4 percent on the day as traders covered
euro-short positions.
                                
 Traders said expectations that Asian and Oceanian countries
will recover faster than European countries due to resilience in
the Chinese economy could continue lending strength to the Aussie
against the euro in the long run.
 (Editing by Joseph Radford)
 (Additional reporting by Masayuki Kitano)