FOREX-U.S. trade gulf weighs on USD, focus moves to payrolls data

* Dollar under fresh pressure after weak trade data

* Big trade deficit could mean a negative Q1 GDP

* Kiwi hit by soft wages data, Aussie retail sales next

By Ian Chua

SYDNEY, May 6 (Reuters) - The dollar nursed broad losses early on Wednesday, having come under renewed pressure after disappointing U.S. trade data for March painted an even bleaker economic picture of the first quarter.

Data on Tuesday showed U.S. trade deficit jumped 43.1 percent to $51.4 billion in March, the largest since October 2008, thanks to a surge in imports. Analysts said the deficit probably subtracted from growth, suggesting GDP could have contracted in the first quarter.

The dollar index fell as far as 94.877, retreating from a one-week high of 95.946. It last stood at 95.160.

Against the yen, the greenback eased to 119.93 from a 3-1/2 week high of 120.51. The euro rebounded to $1.1183, from Tuesday's low of $1.1066.

"Our positioning analysis framework suggests USD long positions have been cut back to their flattest this year, and combined EURUSD positioning is at its least short point since last summer," analysts at BNP Paribas (Xetra: 887771 - news) wrote in a note to clients.

"We think the risk/reward is attractive for entering new USD longs ahead of the jobs data," they said, referring to Friday's non-farm payrolls report.

Investors shrugged off more forward-looking data, including a survey showing the pace of growth in the U.S. services sector rose to a five-month high in April.

Some commodity currencies also firmed as resource prices rallied, with the Australian dollar the best performer. The Aussie rose more than 1 percent to $0.7955 and was last at $0.7924.

It was already on the rise on Tuesday after the Reserve Bank of Australia gave no clear signs that it will ease again, following a widely expected cut in the cash rate to a record low 2.0 percent.

Some analysts now expect the RBA to stand pat for an extended period. In the short term, local retail sales data at 0130 GMT could provide a bit of distraction for the Aussie. .

In New Zealand, a soft wages report added to pressure for a cut in interest rates and put the kiwi under immediate pressure.

The kiwi fell to a near one-month low of $0.7479 before steadying at $0.7494.

The key focus in Asia is a private survey of China's services sector due at 0145 GMT. With the market already worried about slowing Chinese manufacturing activity, any weakness here will undoubtedly cement expectations for more stimulus.

Japanese financial markets will stay shut on Wednesday for the Golden Week holiday. Trading resumes on Thursday. (Editing by Eric Meijer)