* U.S. jobs data, Caixin PMI in spotlight for investors

* Speculators trim bets on dollar to lowest since July 2014 -IMM

* Activity could wane as Chinese holidays start this week

By Lisa Twaronite and Ian Chua

TOKYO/SYDNEY, Sept 28 (Reuters) - The dollar pulled away from a one-month high against a basket of currencies on Monday as investors awaited a key Chinese factory survey and U.S. employment figures this week for clues on when the Federal Reserve will finally hike U.S. interest rates.

Thursday's China Caixin Purchasing Managers' Index (PMI) and U.S. non-farm payrolls on Friday could give the greenback a lift if upbeat results strengthen the case for a rate hike this year.

Continued improvement in U.S. employment conditions as well as signs of stabilization in the recently slowing Chinese economy could help convince the Fed to raise rates for the first time since 2006.

Until then, major currency pairs are likely to stick to recent ranges, market participants and strategists said.

"We have two big events this week. Chinese data now seems to be classified in the payrolls category of events," said Mitul Kotecha, head of Asia-Pacific FX strategy for Barclays in Singapore.

"There's another reason not to be doing anything until you see these two big numbers," he said.

Market activity is likely to wane ahead of China's week-long National Day holidays from Oct. 1, Kotecha added.

The dollar index last stood at 96.243, slightly lower and moving away from Friday's high of 96.700, its loftiest peak since Aug. 19.

Against the yen it fetched 120.38, down about 0.2 percent and below Friday's high of 121.24 on Friday, its highest since Sept. 10.

The euro edged down about 0.1 percent to $1.1186, after dropping as low as $1.1116 on Friday.

Speculators further reduced bullish bets on the U.S. dollar in the week ended Sept. 22 to their lowest since late July last year, according to Reuters calculations and the latest data from the Commodity Futures Trading Commission released on Friday.

Earlier in the month, the Federal Reserve delayed a long-anticipated rise in U.S. rates, sparking volatility in global markets. Since then, a string of Fed officials, including Janet Yellen herself last Thursday, has assured markets that the bank is still on track to normalise policy this year.

Kansas City Fed President Esther George on Friday said she believes the Fed should act soon so that it will "have the luxury" of being able keep rate hikes gradual.

Strong second quarter U.S. GDP data released on Friday added further evidence to support a Fed hike in 2015.