* Fed Chairman Powell sounds positive on U.S. economy
* Dollar rises to 7-week high vs yen, 3-month peak on Swissfranc
* Australian employment data eyed as crucial to ratesoutlook
By Tom Westbrook
SINGAPORE, Sept 19 (Reuters) - The dollar stood tall onThursday after the U.S. Federal Reserve cut rates by 25 basispoints, as expected, but its chairman signalled a higher bar forfuture rate cuts.
The greenback touched a seven-week high of 108.47 againstthe Japanese yen and stood just below that in Asianmorning trade. It also rose on the Swiss franc, hitting athree-month high, and climbed against other major currencies.
The New Zealand dollar briefly jumped 0.2% afterJune-quarter gross domestic product landed higher thanexpectations, before being swamped by a rising greenback. TheAussie fell ahead of jobs data due at 0130 GMT.
The U.S. central bank, on a 7-3 vote, lowered the Fed fundstarget rate on Wednesday to a range of 1.75% to 2.00% "in lightof the implications of global developments for the economicoutlook."
However, Fed Chairman Jerome Powell described U.S. prospectsas "favourable" and the rate move as "insurance." He did notrule out future cuts, but his remarks were not as dovish asmarkets had hoped for which lifted bond yields and the dollar.
Projections published by the Fed showed policymakers, at themedian, expected rates to stay within the new range through2020, while futures markets have priced in at least another cut.
"In the short term, this hawkish cut should still see thedollar well-bid, given that the path of interest rates outlinedby the Fed is not close to that priced into the markets," saidJohn Veils, Americas FX and macro strategist at BNY Mellon.
"The USD is still the highest-yielding currency in the G10world, a sign that it is also the least unattractive house in anincreasingly blighted neighbourhood."
The dollar rose 0.3% on the euro after the Feddecision and steadied at $1.1027 on Thursday. It gave up somegains on the pound to hold around $1.2468.
Its strength on the yen may also reduce pressure for furthereasing from the Bank of Japan, which meets later on Thursday andis widely expected to keep rates on hold.
The New Zealand dollar popped to $0.6332 whenquarterly growth came in a fraction higher than forecasts,though with year-on-year expansion at its slowest since 2013 thebeat has done little to shift expectations of future monetaryeasing there.
The Australian dollar dropped to $0.6811 ahead ofjobs data that is likely to provide a read on the interest rateoutlook.
The Reserve Bank of Australia has indicated that it couldease again unless employment grows.
"An uptick in the unemployment rate likely to push upexpectations for an October RBA cut," ANZ analysts said in anote. "Risks (are) to the downside," they added(Editing by Jacqueline Wong)