* Rebound in U.S. debt yields supports dollar, euro near 2-wk lows
* Aussie stands on top of big gains after overnight RBA boost
* Kiwi extends losses following decline in milk prices
* Loonie steadies but seen vulnerable ahead of trade data
By Shinichi Saoshiro
TOKYO, Aug 5 (Reuters) - The dollar stood tall against the yen and euro early on Wednesday after Atlanta Federal Reserve President Dennis Lockhart expressed his support for an interest rate hike in September.
The dollar was 124.29 yen JPY= after pulling away from an overnight low of 123.80. The euro was steady at $1.0892 EUR= after sliding to a two-week low of $1.0879.
Lockhart, a voter this year on the Federal Open Market Committee, told the Wall Street Journal that it would take "significant deterioration" in the U.S. economy for him to not support a rate hike in September. ID:nL1N10F25P
"Lockhart was not scheduled to speak until Monday (10 Aug), so the hawkishness of the comments, and the timing of the interview is surprising," wrote Richard Cochinos, head of Americas G10 FX strategy at Citi in New York.
After three days of sharp declines, U.S. Treasury yields jumped overnight on Lockhart's comments and supported the dollar.
The dollar index .DXY hovered near a two-week peak of 98.002.
The Australian dollar was another currency on a bullish footing. The Aussie received a big boost Tuesday after the Reserve Bank of Australia toned down its call for a weaker currency.
The Australian dollar was steady at $0.7379 AUD=D4 after surging 1.3 percent overnight, when it managed to reach a two-week high of $0.7428.
Its antipodean counterpart the New Zealand dollar headed in the opposite direction, on track for its sixth straight day of losses.
The kiwi was down 0.1 percent at $0.6534 NZD=D4 and edged closer to a six-year trough of $0.6498 plumbed mid-July after a fall in international milk prices. ID:nL3N10F5G5
The dairy sector generates more than 7 percent of New Zealand's gross domestic product and its price swings impact the kiwi.
The Canadian dollar caught a light breather and firmed just below 11-year lows after crude oil prices rose from multi-month lows.
Canada's loonie, a commodity currency hit hard by declining oil prices, still appeared vulnerable with upcoming indicators seen painting a grim picture of the Canadian economy.
Canadian trade data due out on Wednesday is expected to show a deficit of C$2.8 billion in June. ECONCA
The Canadian dollar fetched C$1.3193 CAD=D4 after falling to the 11-year trough of C$1.3202 overnight.