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FOREX-Dollar finds a steadier footing for now

* Dollar broadly higher as selling momentum fades

* Euro back at sub-$1.1000 levels, Aussie dips below $0.7900

* RBA's report on health of Australia's banking sector next up

By Ian Chua

SYDNEY, March 25 (Reuters) - The dollar clung to modest gains early on Wednesday, having made an about-turn overnight in a tentative sign that the recent sell-off may have run its course for now.

The greenback bounced to 119.73 yen from a near one-month trough of 119.22 plumbed overnight but is expected to stall ahead of 120.00.

The euro stood at $1.0915 after turning around from a high of $1.10295. Traders said a failure to break above the post-Fed meeting high of $1.10625 had triggered the reversal.

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"EURUSD was once again unable to sustain a test above 1.10, with slightly better-than-expected CPI (Other OTC: CPICQ - news) data driving a sharp rebound in the USD," analysts at BNP Paribas (LSE: 0HB5.L - news) wrote in a note to clients.

"The price action is consistent with our expectation that longer-term oriented market participants will be keen to buy USD above $1.10 and we suspect that underlying flows from euro zone investors will continue to limit scope for EUR rallies."

Still, the euro remained well clear of a 12-year trough of $1.0457 set on March 16.

The dollar also regained some ground against commodity currencies such as the Australian dollar, which slid back below 79 U.S. cents from a two-month peak of $0.7939.

Investors had rushed to cut long dollar positions after the Federal Reserve gave a dovish steer on interest rates last week, sending the greenback crashing back from multiyear highs.

U.S. data overnight was modestly dollar friendly, particularly an uptick in underlying inflation which should support the view that the Federal Reserve will raise rates this year.

Yet U.S. Treasury yields fell, in part due to solid demand for a two-year note sale.

"Still, with CPI data suggesting inflation may have bottomed in February and front-end rates having retreated substantially after the Fed last week, there is more scope for reaction to strong data than weak numbers at this point," BNP (Paris: FR0000131104 - news) analysts added.

U.S. durable goods data is due later in the day and the president of the Chicago Fed is due to speak as well. In Asia, there is little for investors to sink their teeth into.

Australia's central bank will release its twice yearly report on the health of the country's banking sector at 0030 GMT. (Editing by Lisa Shumaker)