(Corrects June 29 story in paragraph 18 the date of Alcoa earnings to July 8 from July 7)
* Dollar firms after slide Friday on China comments
* Dollar index <.DXY> holds near 2-week low, Aussie down
* Japan industry output surges, matches April's 50-yr record
By Aiko Hayashi
TOKYO, June 29 (Reuters) - The dollar regained some ground on Monday after falling broadly late last week on a renewed call by China for a super-sovereign reserve currency, placing higher-risk currencies such as the Australian dollar under pressure.
But activity was subdued ahead of significant data this week, including U.S. employment numbers on Thursday, which investors are awaiting to see if a months-long rally in riskier assets such as commodity-linked currencies and shares is sustainable.
Debate about an alternative international currency has heated up in recent months. On Friday, although China's central bank did not mention the dollar by name, it said it was a serious defect in the international monetary system that one currency should dominate. [ID:nPEK261646]
Central bankers gathering in Basel at the weekend also discussed the dollar's role, although China's central bank governor Zhou Xiaochuan said its foreign exchange reserve policy was always quite stable, without sudden changes. [ID:nLS229122]
"The dollar's status as the key currency won't change right away as moves like this need time and international support," said Shinichi Hayashi, a currency trader at Shinkin Central Bank.
China, the world's top holder of foreign exchange reserves, is also working with Brazil on a currency arrangement to allow exporters and importers to settle deals in their local currencies, their central banks said. [ID:nLS478149]
Despite the doubts building about the dollar's reserve status, foreign central bank holdings of U.S. Treasuries have soared by $115 billion in the past eight weeks, a near record-pace of demand and showing persistent buying.
The euro fell 0.4 percent to $1.3990
The dollar index, a gauge for the greenback's performance against six other major currencies, rose 0.4 percent to 80.250 <.DXY>, holding above last week's two-week low of 79.562.
Asian share markets fell as a drop in oil prices weighed on energy-related shares and investors stayed on the sidelines ahead of the end of the second quarter.
Japan's industrial output rose 5.9 percent in May, matching a jump in April that was its fastest pace since 1953, as car and electronics production recovered from a deep slump. But analysts said the outlook remained murky once the effects of government stimulus wear off. [ID:nT316294]
It was the third month in a row of increase, after a big slump, but the rise was smaller than the 7.0 percent improvement forecast by the market and Tokyo's Nikkei average <.N225> fell 1 percent. [.T]
"Today's data is neutral in terms of monetary policy. It signals that the worst is over and the economy is unlikely to come to the edge of the precipice again, but it's still too early to call a sustainable recovery," said Junko Nishioka, chief economist at RBS Securities.
Against the yen, the dollar inched up 0.2 percent to 95.45
yen
Japanese importers' demand at the Tokyo commercial fix earlier in the day helped lift the dollar against the yen, a trader at a big Japanese bank said.
Still, traders expect activity to be cautious ahead of U.S. jobs data on Thursday. Some doubt the pace of job losses will slow quite as quickly as a smaller-than-expected fall of 345,000 showed in May. The data is on Thursday rather than Friday due to a U.S. holiday.
The market is also awaiting the Bank of Japan's tankan business survey due out on Wednesday. It is likely to show the mood among big Japanese manufacturers improved from record lows a quarter ago. [ECON/JP]
U.S. corporate earnings will be also in focus, with aluminium
producer Alcoa Inc
The Australian dollar
Traders said the Australian dollar and other higher-yielding currencies came under pressure as the U.S. dollar gained after sharp falls made late last week.
Some cited disappointment that Japanese industrial production came in weaker than expected, as Japan is the single biggest importer of Australian resources. [AUD/] (Editing by Joseph Radford)