* Yen bounces back after Kuroda mentions policy costs
* Investors suspect BOJ not far from limit in easing
* Sterling hovers below 7-week high vs dollar
* Aussie gains on current account deficit, awaits RBA
By Hideyuki Sano
TOKYO, Sept 6 (Reuters) - The yen kept some distance from a one-month low against the dollar on Tuesday after Bank of Japan Governor Haruhiko Kuroda held back from signalling further easing, acknowledging instead the costs of the BOJ's aggressive stimulus.
The Australian dollar gained 0.5 percent after news Australia's current deficit was smaller than expected in April-June, ahead of the policy announcement from the Reserve Bank of Australia later in the day.
The U.S. dollar is stabilising for now at around 103.45 yen JPY= , having fallen nearly a full yen from Friday's one-month high of 104.32.
Though Kuroda signalled his readiness to expand an already massive stimulus programme in his speech on Monday, he did not provide any explicit hints on the chances of the BOJ aggressively easing policy at its next review on Sept. 20-21. addition, many analysts noted that Kuroda admitted for the first time that his stimulus drive has its costs, even though he disputed the view that the BOJ's stimulus is reaching its practical limit.
"For those who had been believing in a Kuroda who stresses only the benefits of easing, the speech would have been disappointing," said Makoto Noji, senior strategist at SMBC Nikko Securities.
"To be sure, he is unlikely to change his policy framework given that he was preaching the benefit of stimulus. Yet many market players might have felt that the costs are likely to outweigh the benefits in the future," he added.
on the technical nalaysis charts, the dollar has been capped by the Ichimoku cloud bottom in the past few days, failing to extend its rally from around 100 yen late August, driven by hopes that the U.S. Federal Reserve was likely to raise interest rates by the end of year.
"I was thinking the dollar could gain further but looking at yesterday's markets, I felt I had to give up on that. The dollar/yen is likely to have hit a near-term peak already," said Kazushige Kaida, head of foreign exchange in Tokyo at State Street.
The yen also bounced back against the euro, which fell to 115.42 yen from Friday's one-month high of 116.37 yen EURJPY=R .
The common currency was little moved against the dollar, staying at $1.1147 EUR= .
The British pound GBP=D4 maintained its firm tone, following surprising resilience in recent UK economic data, trading at $1.3305 in Asia after having hit a seven-week high of $1.3376 on Monday.
The Australian dollar AUD=D4 rose 0.6 percent to $0.7623, hitting its highest level since Aug 26, maintaining its recovery trend from last week's one-month low of $0.7490.
The Aussie now braces for a decision later in the day from the Australian central bank's policy meeting at 2:30 p.m. local time (0430 GMT).
The Reserve Bank of Australia is expected to keep interest rates on hold at the meeting, the last to be chaired by long-standing governor Glenn Stevens before he retires this month. Aussie could rise a bit if the RBA refrains from a rate cut as expected. But given many market players think its next rate cut will come in November at the earliest - after the next CPI data anyway - the impact may not be so large, mostly driven by algo-type trading," said Yukio Ishizuki, currency strategist at Daiwa Securities.