CORRECTED – CORRECTED-FOREX-Dlr/yen slips towards 15-yr low, Aussie jumps

(Corrects paragraph 3 to long on the dollar, not yen, and
paragraph 4 to bought the dollar, not the yen. Corrects table at
the bottom of story to update U.S. closing values.)

* Dollar/yen near 15-year low, seen vulnerable

* Aussie hits 4-month high on solid jobs data

* Threat of immediate Japan intervention seen tapering off

By Hideyuki Sano

TOKYO, Sept 9 (BestGrowthStock) – The dollar slipped towards a
15-year low against the yen on Thursday as traders bet that
Japanese authorities are not yet ready to intervene, while the
Australian dollar hit a four-month high against the U.S. dollar
on solid Australian jobs data.

The rise in the Aussie did not give its usual fillip to the
U.S. dollar against the yen, via trade in the crosses,
reinforcing bearish views on dollar/yen.

Traders said there had been speculation that Japanese
intervention might be imminent after talk swirled in the market
late on Wednesday that Japanese authorities had checked rates,
prompting short-term players to go long on the dollar.

But wariness about intervention is tapering off as nothing
has happened up to now, and those who bought the dollar might be
unwinding their positions, traders said.

Japanese Finance Minister Yoshihiko Noda said on Thursday
that the ministry was conducting simulations on forex
intervention, in a possible reference to the rate checks, but the
yen hardly budged as the perception remains that Japan is
unlikely to intervene until the dollar falls near 80 yen.

The dollar slipped 0.1 percent on the day to 83.78 yen
(JPY=: ), closing in on a 15-year low of 83.34 yen struck on the
EBS platform on Wednesday.

WARINESS ABOUT INTERVENTION

Wariness about intervention helped to push the dollar up
briefly in early trade but it failed to sustain a rise above 84
yen, its five-day moving average.

“The U.S. dollar really seems under pressure. There’s fear of
a ‘Japanisation’ of the U.S. economy, where growth would stagnate
and interest rates fall,” said Koichi Yoshikawa, head of FX
trading at BNP Paribas.

Shrinking yield gaps between the yen and the dollar have been
a major driver behind the dollar’s fall versus the yen since May.

U.S. bond yields fell on Wednesday even as Wall Street shares
rose on positive news from Europe, showing that many investors
are still not ready to embrace risk and putting pressure on the
dollar.

Japanese government data indicated that Japanese investors
bought a net 731 billion yen ($8.72 billion) of foreign bonds
last week, showing no signs of repatriation by Japanese investors
ahead of their half-year book-closing on Sept. 30.

Some market players are now looking to the Japanese ruling
party’s leadership vote next Tuesday, with Prime Minister Naoto
Kan holding only a slim lead over rival Ichiro Ozawa, seen by
markets as likely to pursue more reflationist policies.

If Ozawa wins the vote and becomes prime minister, some
market players have said there is likely to be a knee-jerk fall
in the yen.

The greenback seems to have some support at the lower end of
its Bollinger Band around 83.35, said Teppei Ino, analyst at Bank
of Tokyo-Mitsubishi UFJ, noting that the dollar rebounded at that
level on Wednesday.

Many traders think it is only a matter of time, however,
before the dollar falls below that level.

The dollar index (Read more about the global trade. ) (.DXY: ) has repeatedly failed to break above
its 55-day moving average, making the case for more weakness in
the currency.

DIVERGENCE?

The Australian dollar jumped to a four-month high of $0.9237
(AUD=D4: ) after strong Australian jobs data, breaking above the
$0.92 resistance it had been struggling with.

The data boosted expectations that Australia will raise rates
in the future, with the OIS pricing in one more rate hike within
a year. (AUDOIS: )

The Australian currency also hit a record high against the
euro of A$1.3795 per euro (EURAUD=R: ).

The Canadian dollar also kept Wednesday’s hefty gains
following a rate hike by the Canadian central bank. It stood at
C$1.0380 per U.S. dollar (CAD=D4: ).

“The direction of monetary policy is completely the opposite
between the United States and countries like Australia and
Canada. So currencies like the Aussie and the Canadian dollar
will tend to be favoured,” said BNP Paribas’ Yoshikawa.

The euro stood at $1.2730 (EUR=: ), after rising about 0.3
percent on Wednesday as Portugal raised 1.04 billion euros,
helping to soothe fears about government funding in Europe.
Poland’s sale of five-year bonds also saw solid demand.
[ID:nLDE6871LP] [ID:nLDE6871F0]

Later on Thursday, the Bank of England will hold a monetary
policy meeting, where it is expected to keep rates on hold at 0.5
percent and to refrain from increasing its asset purchase
programme.

The pound traded at $1.5460 (GBP=D4: ), off a 1-