* Euro near 5-wk low vs dollar, record lows vs AUD, NZD * ECB rate cut further dampens euro appeal * Strong U.S. jobs reading could boost dollar By Jessica Mortimer LONDON, July 6 (Reuters) - The euro stayed close to a five-week low against the dollar on Friday, a day after an interest rate cut by the European Central Bank further dampened the common currency's appeal and as the market awaited key U.S. jobs data. U.S. non-farm payrolls are due at 1230 GMT. A solid reading could boost the dollar if it suggested the U.S. Federal Reserve was less likely to follow the central banks of China, Britain and the euro zone in opting for more stimulus. The U.S. economy is expected to have added 90,000 new jobs last month. Some analysts believe this week's better-than-expected U.S. private payrolls data suggest the rise in non-farm payrolls could be bigger than this, with Goldman Sachs raising its forecast to a 125,000 gain from 75,000 previously. "If non-farm payrolls are strong enough to suggest there will be no QE from the Fed, the dollar will strengthen. If they are weaker then the dollar will fall as the Fed will just be playing catch-up with the rest of the world," said ING head of currency strategy Chris Turner. The euro was steady at $1.2399, near a 5-week low of $1.23638 hit on Thursday. A break below there would leave it on course for a move towards the two-year low of $1.2288 struck on June 1. The euro was expected to continue falling after the ECB cut its main interest rate to 0.75 percent and the deposit rate to zero, which reduced the incentive for investors to hold a currency already beset by debt problems. Many analysts expect the ECB's easing this week will lead the euro to take on the role of a funding currency - a currency used to fund investments in higher-yielding assets -, meaning it could struggle to make ground even when share price rise. "A weaker euro has to be one of the least costly solutions to the euro zone crisis," ING's Turner said, adding he expected the euro to see an "orderly decline" towards $1.15 by year-end. A Reuters poll conducted after the ECB rate cut showed economists expect more measures from the central bank in coming months, possibly including another round of cheap, long-term loans for banks. The euro also stayed close to record lows hits on Thursday against the Australian and New Zealand dollars . Against the Swiss franc, the euro was at 1.2010 francs , continuing to hover just above the Swiss National Bank's 1.20 franc floor which it imposed last year in an attempt to stem franc appreciation. Many in the market believe the SNB will struggle to maintain the cap, with data on Friday showing the SNB's foreign exchange reserves jumped 19 percent in June as the euro zone crisis forced it to intervene heavily. FIRMER DOLLAR Renewed euro softness saw the dollar index rally to 82.950 on Thursday, a high not seen since early June. It stayed close to that level and was last at 82.828. Against the yen, the dollar was barely changed at 79.88 yen having reached a two-week high of 80.099 on Thursday. Traders reported sell orders around 80.10 which may cap gains. "If the jobs data is indeed slightly stronger than many in the market expect, we may see some renewed strength in the dollar versus other currencies," said Teppei Ino, currency analyst at the Bank of Tokyo-Mitsubishi UFJ in Tokyo. The higher-yielding Australian dollar was down 0.1 percent against the U.S. dollar at $1.0271, off a two-month high of $1.0330 hit on Thursday following a surprise interest rate cut in China, its second in a matter of weeks. China is Australia's single largest export market and any action to stimulate the world's second-biggest economy is usually seen as positive for the Australian dollar.

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