FOREX-Euro, Aussie lifted by new bank rules, China data

* Euro surges, relief at Basel bank regulations help

* China data lifts risk appetite, helps Aussie to 4-mth high

(Updates prices, changes byline, dateline; pvs TOKYO)

By Jessica Mortimer

LONDON, Sept 13 (BestGrowthStock) – The euro jumped against the
dollar on Monday as relief at new global banking regulations and
upbeat Chinese data lifted investor appetite for currencies seen
as higher-risk.

Global regulators agreed tough new capital requirements for
banks on Sunday, but these were broadly as expected and markets
reacted positively as lenders were given longer than expected to
comply with the rules. [ID:nLDE68B0BP]

Upbeat Chinese economic numbers propelled the
higher-yielding Australian dollar to its highest in four months
versus the greenback, while the low-yielding yen also retreated.

The euro extended gains after stop loss orders were
triggered around $1.2750/70 and then above $1.2800, breaking
above its 55-day moving average at $1.2815.

“Better risk appetite is putting the dollar under pressure
and the euro and currencies like the Australian dollar have been
holding up very well,” said Niels Christensen, currency
strategist at Nordea in Copenhagen.

At 0749 GMT, the euro (EUR=: ) was up 1.1 percent against the
dollar at $1.2822. It also rose 0.8 percent against the yen
(EURJPY=R: ) to 107.60 yen.

New Basel III rules agreed on Sunday will require banks to
hold top-quality capital totalling 7 percent of their
risk-bearing assets. The regulations give banks longer than
expected to comply and this lifted equities, with European
shares (.FTEU3: ) up 0.7 percent. [ID:nLDE68B0BP] [ID:nLDE68B0HV]

Analysts said the euro was targeting $1.2920, a level it
failed to break above earlier this month, but they warned that
unless it topped that level it was likely to remain within its
recent ranges.

The euro has been in a broad downtrend against the dollar
this year on concerns about sovereign debt and the European
banking system. It is holding above its 100-day moving average
of $1.2652, which has tended to act as a trendline.

YEN FALLS, AUSSIE SHINES

The yen fell broadly, though it eked out gains against the
dollar, which traded down 0.2 percent at 83.98 yen (JPY=: ) to
keep it near a recent 15-year low of 83.34 yen.

This kept alive jitters about whether Japanese authorities
may step in to curb yen gains ahead of a leadership election on
Tuesday in which Prime Minister Naoto Kan is being challenged by
powerbroker Ichiro Ozawa, who has said he favours intervention.

Traders said the dollar was caught in a range, with bids
from Japanese importers around 83.50-80 yen, while exporter
offers were reported above 84.20 yen.

Weekend data showed Chinese factories ramped up production
in August and money growth topped expectations, indicating the
economy remained buoyant despite government efforts to clamp
down on bank lending and property speculation. [ID:nTOE68A00H]

“There’s a general risk-on move as relatively benign Chinese
data over the weekend and a lack of policy tightening, which had
been rumoured, are all encouraging risk,” said John Horner, a
foreign exchange strategist at Deutsche Bank in Sydney.

That helped the Australian dollar rise 0.6 percent to
$0.9330, its strongest since late April. It faces resistance at
the April high of $0.9389 and then its 2009 peak at $0.9407.

It also hit 78.51 yen (AUDJPY=R: ), its highest in a month and
above its 100-day moving average at 78.00 yen.

Commodity Futures Trading Commission data showed currency
speculators slightly raised net long yen positions in the week
ending Sept. 7, just before the yen’s latest 15-year high. They
also raised net long position in the Australian dollar. [IMM/FX]
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ PDF presentation on the yen: http://r.reuters.com/mam52p PDF on Japan leadership vote: http://r.reuters.com/vyk92p ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

(Additional reporting by Charlotte Cooper in Tokyo)

FOREX-Euro, Aussie lifted by new bank rules, China data