* Yen strength persists as risk trades unwound
* Dollar hits 6-wk low and euro 9-month low vs yen
* Aussie rises as Q4 CPI almost guarantees rate hike in Feb
* Caution on China, ahead of FOMC, earnings, Obama's speech
By Kaori Kaneko
TOKYO, Jan 27 (Reuters) - The yen firmed broadly on Wednesday as investors remained jittery about risk-taking, with the focus still on China's efforts to curb lending and the outcome of a Federal Reserve policy meeting later.
But the Australian dollar climbed against the U.S. dollar after local data showed a rise in consumer prices, reinforcing views that the Reserve Bank of Australia will hike rates in February.
News of artillery fire between North and South Korea briefly weighed the dollar and euro down against the yen, a reaction traders said stemmed from a dip in South Korea's share market.
Talk that Japanese exporters sold dollars also helped send the greenback to a six-week low on the yen, while the euro, continuously pressured by fiscal concerns in the euro zone, hit a nine-month low against the Japanese currency.
The market has plenty to keep it jittery. The Fed ends a two-day meeting on Wednesday which is expected to yield little in terms of a policy shift but comes as the market waits to see if Chairman Ben Bernanke will be confirmed in his post for a second term. His current term expires on Sunday..
"Market sentiment is tilted toward further reluctance to take risks, with several factors at play including news related to China's tightening," said a trader at a Japanese bank.
The market is closely watching China's steps to rein in credit and prevent inflation and potential asset bubbles, with investors nervous the measures could also rein in growth and demand for exports from other economies.
The official Securities Times reported on Wednesday Chinese regulators have ordered banks to call back some of the loans they extended in January, ratcheting up the pressure on banks to fall in line with official lending targets.
President Barack Obama is also scheduled to deliver his State of the Union address, while a number of key U.S. companies are due to unveil earnings for the fourth quarter later on Wednesday..
Last week, Obama proposed sweeping reforms to curb risky lending by banks, which spooked financial markets.
"The world is watching what Obama might say about the bank regulation plan. If he makes strong remarks about regulation, it will likely prompt investors to exit from risk-assets further such as stocks and yen crosses," the trader said.
The dollar fell 0.5 percent to 89.15 yen, its weakest level since mid-December.
The euro shed 0.4 percent to 125.60 yen, after falling as far as 125.42 yen, a fresh nine-month low.
Traders said speculators were using this nervous environment to pare some long positions in higher-yielding currencies.
"We expect the FOMC to leave guidance that rates are likely to remain exceptionally low for an extended period unchanged," JP Morgan said in a note.
"Until then, markets will tread lightly, with risky markets likely biased lower until uncertainties are clarified."
The dollar index was steady at at 78.422, sitting just above its 200-day moving average at 78.360.
The euro flat at $1.4080 from late in New York on Tuesday when it lost nearly 0.5 percent.
The Australian dollar climbed 0.4 percent to $0.9020 after fourth-quarter consumer price index rose a little faster than forecast, almost guaranteeing a rate hike next week. Against the yen, the Aussie slipped 0.1 percent to 80.44 yen after dipping to one-month low below 80 yen on Tuesday. (Additional reporting by Anirban Nag, Masayuki Kitano in Tokyo; Editing by Edwina Gibbs)