* Swiss franc hit by intervention fears

* Euro seen under mounting pressure as Italy vote looms

* Greek cabinet to hold emergency meeting on Tuesday

By Ian Chua

SYDNEY, Nov 8 (Reuters) - The threat of more intervention by Swiss authorities kept the franc under pressure early in Asia on Tuesday, while the euro struggled to gain traction against the dollar as debt fears in the euro zone turned to Italy from Greece.

The Swiss franc fell broadly on Monday after the country's central bank officials stepped up their warning of more action to curb the franc if needed. The SNB has capped the currency at 1.20 francs per euro in September and vowed to defend that level with all means necessary.

Even the shaky euro posted its biggest one-day rally in two months against the franc. It was at 1.2400 francs , having jumped 1.6 percent on Monday. The dollar climbed above 0.9000 francs for the first time in over two weeks.

But against the dollar, the euro was at $1.3767 , down slightly from $1.3773 late in New York. It fell as low as $1.3679 on Monday, but stayed within the $1.3608 and $1.3866 range seen in the past week.

This also kept the dollar index hemmed in a slim 76.574 and 77.676 range. It last stood at 76.978.

The resilience of the euro was again a talking point among market players, who were puzzled it hadn't suffered a bigger fall after Italy's borrowing costs hit their highest since 1997, approaching levels seen as unsustainable.

Traders said euro bears had been badly burnt in late October when the common currency briefly surged above $1.4200 and were still cautious about taking big short positions.

Still, the pressure is mounting for the euro. The fear is that soaring Italian bond yields and political instability may engulf the region's third largest economy, which is seen as too big to fail.

"The threat to the FX market, obviously, is that a country with nominal GDP growth of just 1.8 percent at the last count and debt totalling 120 percent GDP, cannot sustain 6.5 percent yields for long," said Kit Juckes, strategist at Societe Generale.

"The euro is watching to see who will head the new Greek government, how the Italian Budget vote will go, and whether it will lead to a change in the government. But the pressure is building, even if it is visible only in the bond market."

European Central Bank policymaker Juergen Stark tried to lighten the mood, saying he saw the euro zone crisis over in the next year or so as politicians have started to realise the need for painful action.

The Greek cabinet will hold an emergency meeting on Tuesday. Greece's main parties have been in talks over who to appoint as prime minister to lead a coalition agreed late on Sunday.

With the G3 currencies breaking no new ground, commodity currencies also kept to recent well-worn ranges. The Australian dollar was at $1.0377, oscillating around $1.0350 after its October rally from $0.9388 to $1.0753 ran out of steam.