* Caution before U.S. jobs data confine dollar in narrow range

* Canadian dollar hovers near 2-week highs after bounce in crude

By Shinichi Saoshiro

TOKYO, Oct 2 (Reuters) - The dollar treaded water against the yen and euro on Friday as investors were wary ahead of the U.S. non-farm payrolls report, which could bolster, or diminish, the chances of the Federal Reserve raising interest rates before year-end.

Economists expect U.S. nonfarm payrolls data, due later in the global day, to show that employers added 203,000 jobs in September, according to a Reuters poll.

A figure in line or better than forecast would enhance prospects of the Fed tightening monetary policy this year or early in 2016.

Despite weakness in China, the U.S. economy and labour market have stood on more solid ground, keeping alive prospects of the Fed raising rates this year after it opted not to do so in September.

The dollar was steady at 119.84 yen, confined to a tight 120.60-119.245 range so far this week. The euro was flat at $1.1191, having drifted down from this week's peak of $1.1282 struck on Tuesday.

"Fed Chair Yellen has already mentioned that labour conditions are improving and hinted that developments overseas, notably in China, and prices were chief concerns," said Shinichiro Kadota, chief Japan FX strategist at Barclays in Tokyo.

"A very bullish report would of course have a big impact. But the Fed may not make its rates decision on employment data alone," he said.

The Canadian dollar hovered near two-week highs scaled overnight thanks to a surge in prices of crude, a major export commodity for Canada.

The loonie fetched C$1.3242 per dollar after hitting the two-week high of C$1.3219. The Canadian dollar fell to an 11-year low of C$1.3457 early this week when commodities including crude took heavy hits amid jitters over slowing global growth.

The Australian dollar was nearly flat at $0.7036, nudged off a 1-week high of $0.7085 scaled the previous day when a release of Chinese manufacturing activity was not as bad as feared.

(Editing by Shri Navaratnam)