Euro ticks up, Aussie firm ahead of central bank meet

The euro ticked up in Asia on Tuesday, steadying from a slide after the Eurogroup chairman said the common currency was overvalued, while the Australian dollar held firm ahead of a central bank meeting despite expectations that it will keep interest rates steady.

Asian stocks eased after the S&P extended its slide to a fourth day overnight, hitting its lowest since mid-March, after a spate of weak US economic data pointed to slowing growth.

The euro traded at USD 1.4574 at 0200 GMT, having fallen as low as USD 1.4555.

The common currency came under pressure on Monday after Jean-Claude Juncker, chairman of the Eurogroup, made his comment about valuation and a spokesman for the German finance ministry said a second aid program for Greece was not certain.

"Those comments (from Juncker) probably weighed on the euro at the margin. But the direction of a weaker dollar is pretty clear this point in time, so I'm expecting a bounce in the euro," said Richard Grace, chief currency strategist at Commonwealth Bank.

The euro has gained more than 4% since climbing from its May 23 trough versus the dollar. Despite uncertainty over a fresh rescue package for Greece, it is being supported by persistent US dollar weakness and expectations that the European Central Bank will signal a July interest rate rise at its policy meeting on Thursday.

The Australian dollar , the world's fifth-most traded currency, was steady around USD 1.072, approaching a three-week high it touched last week.

The Reserve Bank of Australia is due to decide on interest rates at 0430 GMT. Most economists polled by Reuters expect the central bank to hold rates at 4.75% amid uncertainty about growth in the United States and Europe, but it is expected to raise them later in the year to put a lid on price pressures.

The Nikkei average was flat at 9,379.48 as short covering of utilities and some bargain-hunting offset selling on fears that US growth may be stalling, analysts said.

"When the Nikkei trades below 9,400 institutional investors buy global cyclical shares as a long-term investment and retail investors tend to buy defensive shares with high dividend yields, such as drugmakers," said Fujio Ando, a senior managing director at Chibagin Asset Management.

MSCI's index of Asia-Pacific stocks outside Japan fell 0.6%.

Technical indicators suggest further declines may be on the horizon, analysts at Barclays Capital said in a research note.

"Various topping patterns in equity markets from different regions suggest the risk of an ongoing corrective pullback in equity markets over the summer," they said.

Brent crude oil for July delivery fell 38 cents to USD 114.10 a barrel, extending Monday's fall when it closed at its lowest in two weeks, on expectations OPEC will raise production targets when it meets this week.

US gasoline prices fell for the fourth week in a row last week as crude prices recoil, relieving some pressure on consumers and reinforcing the views of some economists that the current economic "soft patch" will be temporary.

Gold was almost unchanged at USD 1,543.16 per ounce by 0144 GMT, after closing at USD 1,543.05 on Monday. Gold, one of the chief beneficiaries of worries about the security of currencies and other assets, set a record high of USD 1,575.79 per ounce in early May.