FOREX-Euro edges closer to 2010 lows; ECB awaited

* Euro stuck at 2-week low vs dollar, March low beckons

* ECB awaited for details on new collateral rules

* Aussie helped by upbeat jobs data but blocked near $0.9300

* Greek/German 10-year yield spread at euro lifetime wide

(Updates prices; changes byline, dateline; previous TOKYO)

By Jessica Mortimer

LONDON, April 8 (Reuters) - The euro fell on Thursday, grinding closer to this year's low against the dollar on concerns about Greece's precarious fiscal health as investors awaited a European Central Bank policy decision.

The ECB, which announces its decision at 1145 GMT is expected to flesh out new collateral rules that will extend easier lending terms into 2011 to ease the financial squeeze on Greece, while keeping interest rates at a record low. [ID:nLDE6350JT]

This will keep the market's focus on the troubles in Greece as investors grow increasingly sceptical of the highly indebted euro zone country ability to end its debt crisis.

These concerns pushed the spread of the yield on 10-year Greek bonds over German Bunds to its widest in the lifetime of the euro .

"All the negative issues around Greece are still weighing on the euro, not only against the dollar but against sterling and the yen. Across the board the euro is suffering," said Niels Christensen, currency strategist at Nordea in Copenhagen.

"At the same time the dollar is well supported by the latest backdrop, with people confident that the signals from the Fed are not running against the market's rate hike expectations".

Two top Federal Reserve officials warned of the risks to the economy from asset bubbles on Wednesday, and one suggested raising interest rates, though Fed Chairman Ben Bernanke offered a relatively downbeat view of the economy. See [ID:nN07619058]

At 0745 GMT, the euro was down 0.3 percent at $1.3296, having hit a two-week low around $1.3293.

This took it closer to its 2010 trough of $1.3267 recorded in March on trading platform EBS, which was its lowest since May last year, though traders cited options expiries at $1.3300 which they said may help cap losses.

Loss-cutting sell orders are likely below $1.3267 and traders expect small support levels around $1.3200 and $1.3100.

The euro also fell 0.4 percent against the yen to hit a two-week low of 123.80 yen and touched a six-and-half week low against sterling of 87.48 pence.

"There is evidence of contagion from Greece in global markets today. It's not too severe but it's there. We're seeing the yen a bit stronger and the euro a bit weaker," said Greg Gibbs, forex strategist at the Royal Bank of Scotland in Sydney.

EYES ON CHINA

The yen held firm against the dollar, which fell 0.2 percent to 93.13 yen . The market watched for signals on whether China might let the yuan rise as U.S. Treasury Secretary Timothy Geithner headed to Beijing for talks. [ID:nTOE636033]

The Australian dollar fell 0.3 percent to $0.9238, moving away from a near 12-week high of $1.9299 but staying well-supported after data showed 19,600 jobs were added in March and full-time employment strengthened. [ID:nSGE63605Y]

However, the currency lacked momentum to test key resistance at $0.9300, with traders in Asia citing talk of options-related selling near that level.

"While we're not expecting another hike in May, these numbers do potentially raise the risk that the Reserve Bank might be tempted to do another hike in May." said Gareth Berry, currency strategist at UBS in Singapore.

Implied probability shows investors are pricing in a one-in-three chance of a quarter point increase in May.

(Additional reporting by Charlotte Cooper in Tokyo)