Reuters: US Dollar Report: FOREX-Euro near 3-wk high on Dutch debt sale, Apple results

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FOREX-Euro near 3-wk high on Dutch debt sale, Apple results Apr 25th 2012, 01:01 Tue Apr 24, 2012 9:01pm EDT * Solid demand at Dutch debt sale helps euro * Apple results bolster risk appetite across Asia * Aussie bounces back from 2-wk low hit on CPI data * Yen lower on easing safe-haven demand, importer selling * Outcome of Fed meet later on Wednesday awaited By Antoni Slodkowski TOKYO, April 25 (Reuters) - The euro held most of its gains on Wednesday and came close to a three-week high against the dollar after Dutch debt attracted decent demand despite the collapse of the country's government and as strong earnings from Apple bolstered Asian shares. The euro, further boosted versus the greenback after data suggested U.S. home prices may be stabilising, edged near levels not seen in the last three weeks, last fetching $1.3203. Immediate resistance is at last week's high of 1.3225. Traders cited stop losses at 1.3230 in the common currency, while chartists suggested that if they get triggered, the euro would target resistance at the 61.8 percent retracement of its slide to 1.2995 from around 1.3386, coming in at 1.3236. Any further gains in the euro could be affected by the Federal Reserve, however, which is expected to repeat its intent to keep benchmark U.S. interest rates near zero through 2014 when it ends a two-day policy meeting on Wednesday. "Ahead of the Fed FOMC outcome today trading is likely be relatively restrained, with the risk rally struggling to make much headway," said Mitul Kotecha of Credit Agricole Corporate and Investment Bank. "Assuming that the Fed does not alter its policy setting but instead only tinkers with its economic forecasts, the dollar will escape any further selling pressure," he said, adding that any reference to quantitative easing would be negative for the currency, although analysts thought that was unlikely. Other risk-sensitive currencies, such as the Australian and New Zealand dollars gained as Asian equities jumped after Apple Inc's results beat Wall Street estimates, sending its stock up 7 percent. Chinese stocks were likely to get a fillip following the results as stronger-than-expected demand for the iPhone was largely generated in the greater China region, where sales jumped five-fold. This saw the Aussie pull away from a two-week trough at $1.0247 hit after low inflation data the day before paved the way for a cut in domestic rates in May, putting it smack bang in the middle of its recent range at 1.0327. Resistance in the Aussie was seen at the 200-hour moving average at $1.0349 and then a string of daily highs between 1.0385 and 1.0415, suggesting any gains in the currency would likely be hard won. The kiwi is at $0.8133, after staging a powerful comeback from yesterday's low of 0.8098. Improvement in risk appetite helped the dollar climb on the safe-haven yen and pull away from the overnight low of 80.86 yen to 81.42 yen, up 0.1 percent on the day. Traders said the dollar was also supported by buying from importers, with Japanese corporations preparing for a series of holidays early next month known as Golden Week. Link this Share this Digg this Email Reprints

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