RPT-GLOBAL MARKETS-Dollar holds line as Japan shares dip

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By David Fox

SINGAPORE, Oct 12 (Reuters) - Dealers eyed a line in the sand for the dollar on Tuesday as the U.S. currency held steady against yen, but Japanese stocks fell slightly following a three-day market break.

The Fed's November meeting is now the market's focal point, and minutes from its meeting on Sept. 21, when it said it stood ready to provide more support for the economy and expressed concern about low inflation, are due at 1800 GMT.

* The Australian dollar fell from near three-decade highs seen last week to $0.9792, but many traders still see the currency on track to hit parity and put Tuesday's falls down to short term profit taking.

* Gold edged lower pressured by a stronger dollar, but expectations of further monetary easing by the U.S. Federal Reserve are likely to support the bull run in bullion. Spot gold inched down $1.6 to $1,351.35 an ounce in early trading reversing gains in the previous session.

* Asian stocks dipped slightly with the MSCI Asia ex-Japan index <.MIAPJ0000PUS> down 0.87 percent in early trade.

* China's central bank auctioned 22 billion yuan ($3.3 billion) of one-year bills in its open market operation on Tuesday at a yield of 2.0929 percent, unchanged from the last sale and in line with market expectations. [nTST000508]

Traders had expected the People's Bank of China to keep the one-year bill yield steady because of its reluctance to send any market signals that it wants to lift benchmark interest rates.

* The euro was down 0.2 percent in early trading at $1.3853 with one market player noting stops building in the $1.3830-35 area.

* The dollar index <.DXY> was up 0.12 percent at 77.531, still close to its lowest in nearly nine months.

(Editing by Tomasz Janowski)