Euro sharply down vs USD, pound & kiwi
* Yen near 3-month peak on dollar
* China PMI due at 0100 GMT, much at stake
By Cecile Lefort
SYDNEY, Feb 1 (Reuters) - The euro was nursing broad-based losses in early Asia on Wednesday after a messy sell-off overnight eradicated days of hard-won gains, while investors kept a wary eye out for Japanese intervention to curb a mighty yen.
The market's focus is now on China's manufacturing activity report for January due at around 0100 GMT, with forecasts centered on 49.5.
"A move down sub-50 would be of some concern, although I suspect it's somewhat expected," said Gavin Stacey, head of Australia and New Zealand research at Barclays Capital.
"So long as Europe and US PMIs strengthen, then the spillover effect in terms of risk appetite may mitigate a weaker number in China," he added.
Traders reported whispers the PMI could be as high as 52.0, though such rumours have been wrong before.
The euro gained nearly 1 percent in January, its best monthly performance since October, but succumbed to brutal month-end selling as investors shifted their portfolios. It shed two cents on Tuesday to a low of $1.3041.
The euro was last at $1.3076, from a near six-week high of $1.3228 hit last week. Support is found at the Tenkan line at $1.3049, ahead of $1.2997 with resistance at $1.3200.
The single currency was the subject of similar sharp moves on the pound and reached a fresh record low against the New Zealand dollar at NZ$1.5854.
Euro zone debt issues remained very much in focus during the session. While Greece looked closer to clinching a deal on its debt, the European Central Bank showed some reluctance to agree on similar terms for its own Greek bond holdings.
The dollar nursed heavy losses against the yen, having fallen to its lowest level since the last intervention in October.
It was last at 76.27, down two yen in just a week. Traders reported dollar bids towards 76.00 yen and stop-loss dollar offers below 75.80 yen.
The rise of the yen has prompted talk of possible intervention by the Japanese authorities, though many traders suspect they have no stomach for another round of massive yen selling.
In any case, the yen's strength is in part a reflection of dollar weakness following the Federal Reserve's commitment to keeping interest rates near zero until late 2014.
More and more analysts now believe the Fed is preparing the way for another round of quantitative easing which will encourage the use of the dollar as a funding currency for carry trades.
Weaker-than-expected economic reports in the U.S. only added to talk of more quantitative easing.
The dollar index nudged up 0.15 percent while markets were closely watching for any moves from the Swiss National Bank as the euro traded near to the 1.20 franc floor in euro/Swiss.
The euro was last at 1.2036 francs, just above 1.2030 struck overnight, its lowest since the SNB set the floor in September.
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