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(Reuters) - Asian shares slipped on Tuesday as a U.S. holiday robbed markets of momentum, while the euro hit a fresh one-year low on uncertainty over the European Central Bank's policy decision later this week. Spreadbetters expected an effectively flat open for Europe, with Britain's FTSE .FTSE, Germany's DAX .GDAXI and France's CAX .FCHI forecast to open about 0.1 percent higher. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS lost 0.6 percent after managing to carve out gains on the previous day.

 With U.S. markets closed for Labor Day, investors in Asia were somewhat subdued. The mood was also tempered by persistent geopolitical concerns and anemic manufacturing surveys in Asia and Europe showing pockets of weakness in the global economy. Tokyo's Nikkei .N225 bucked the trend and rose 1.2 percent, with a planned cabinet reshuffle by Prime Minister Shinzo Abe helping fuel reform hopes. The dollar, boosted by the flagging euro and gains in Tokyo shares that dented the appeal of the safe-haven yen, rose to a seven-month high of 104.87 yen JPY=. "The dollar's gains are driven by actual flows, such as options-related buying. The market is also keeping an eye on the rise in equities," said Shinichiro Kadota, chief Japan FX strategist at Barclays Bank in Tokyo. Immediate focus was on the ISM's report on U.S. manufacturing due later in the day, which might point to the U.S. phasing out quantitative easing just as the ECB contemplates its adoption.

 The euro slipped to a fresh one-year low of $1.3115 EUR=. The common currency was expected to remain under pressure ahead of Thursday's European Central Bank policy meeting. While many market participants do not expect the ECB to take major easing steps this week, a few are seen braced for new policy measures. Further central bank easing is considered a matter of when and not if in the face of risks to euro zone growth posed by the Ukraine conflict and stubbornly low inflation. "This week may start to mark the biggest shift in global monetary policy since 'Abenomics' went into full steam on the appointment of Haruhiko Kuroda to head up the BOJ," equity strategists at Jefferies wrote in a note to clients. The decline in European headline inflation rates, collapse in German bund yields, and the call by the president of the ECB for 'growth friendly' fiscal policy suggests that Europe is finally moving towards quantitative easing, they said.

 The Australian dollar showed little reaction to the well-anticipated decision by the Reserve Bank of Australia to keep its cash rate at a record low 2.5 percent for the 12th consecutive meeting. The Aussie was down 0.4 percent at $0.9296 AUD=D4 after brushing a one-week low of $0.9285. In commodities, Brent crude held steady below $103 a barrel on Tuesday, with new unrest in OPEC oil producer Libya balanced by concerns of slowing oil demand growth due to weak economic recoveries in China and Europe. [O/R] Palladium hovered near a 13-1/2 year high of $910 an ounce hit overnight on fears that possible Western sanctions against Russia over the Ukraine crisis could hit supply from the world's top producer of the metal, while gold nudged higher. [GOL/] Spot palladium XPD= last traded at $904.50 an ounce. Russia accounted for more than 40 percent of global palladium supply last year. (Editing by Eric Meijer & Shri Navaratnam)

GBP/USD's recovery from 1.6534 extended higher and intraday bias remains neutral for more consolidative trading. But upside of recovery should be limited by 1.6737 resistance and bring fall resumption. Below 1.6534 will extend the fall from 1.7190 to 1.6251 cluster support (38.2% retracement of 1.4813 to 1.7190 at 1.6282).
 In the bigger picture, price actions from 1.3503 (2009 low) are treated as consolidations to long term down trend from 2.1161. The current development, with medium term top formed at 1.7190, argues that such consolidation is possibly completed, just below 50% retracement from 2.1161 to 1.3503 at 1.7332. Focus now turns to 55 weeks EMA (now at 1.6508). Sustained trading there will pave the way for 1.4813 key support and below.

In the longer term picture, we're sticking on to the view that price actions from 1.3503 are forming the fourth wave of the five wave sequence from 2.1161. That means, firstly, 1.3503 shouldn't be the end point of the downtrend yet and a new low is expected. However, secondly, as the next fall could be the fifth wave, the breach of 1.3503 could be shallow and brief from long term point of view and we'll then see a more sustainable rebound.