HONG KONG, June 21 Reuters The Australian dollar rose on Tuesday after the central bank flagged more rate hikes were on the way, but the uptick was restrained by lower commodity prices, while the Japanese yen languished near a 24year low.

The Aussie was 0.3 higher at 0.69675, extending the previous day39;s small gains, after Reserve Bank of Australia RBA Governor Philip Lowe signalled a lot more policy tightening ahead.

Lowe said rates were still very low and it was important that higher inflation did not feed into public expectations and wage claims.

RBA minutes from its June meeting, at which the central bank raised rates by a larger than expected 50 basis points, highlighted the central bank39;s concerns about inflation.

Still, the Aussie dollar is facing pressure from lower commodity prices, and analysts at CBA said further falls in iron ore prices would weigh on the currency in the near term while slowing global growth would be a drag in the longer term.

We forecast AUDUSD will spend most of the next twelve months in a 0.600.70 range, they said in a note.

Elsewhere the Japanese yen remained under pressure at 135.1 yen per dollar, not far off a 24year low of 135.58 yen hit early last week, after the Bank of Japan on Friday dashed any mild expectations of a change in policy and renewed its commitment to ultraeasy monetary settings.

The euro was at 1.0519, a fraction higher, as Monday39;s remarks from European Central Bank President Christine Lagarde about the…