* Dollar holds above a 15-year low versus yen
* Euro retreats after failing to hold above $1.4000
* Aussie dips back below $0.9900
By Ian Chua
SYDNEY, Oct 26 (Reuters) - The U.S. dollar steadied above a
15-year low versus the yen in early Asia on Tuesday, while the
euro came under some pressure after failing to hold above
With the U.S. Federal Reserve set to pump more money as
early as next week to spur a flagging economy but still no
clear concensus on how much cash they will inject, analysts
expect the dollar to stay choppy.
Keeping the market guessing, New York Fed President William
Dudley said whether an incremental or big bang approach to
asset purchases by the Fed would work better depends on the
Dudley also said he would put very little weight on what
the market is pricing in. [ID:nNLLPLE6LF]
The dollar was last at 80.82 yen JPY= versus 80.77 late
in New York, after having fallen as low as 80.41 on trading
platform EBS, a 15-year low and not far off a 79.75 record low.
Last month, Japan intervened to slow the yen's gains to
little avail, and traders said chances of more official yen
selling would increase if the dollar falls below 80 yen.
"The market may be looking to square up ahead of next
week's FOMC. There is a sense that a big QE is coming and
perhaps the market is wondering whether it may have overcooked
its expectations a little bit on that front," said Greg Gibbs,
strategist at RBS in Sydney.
On Monday, the market saw a short-term truce among the G20
economies on competitive currency devaluation as a green light
for more dollar weakness.
Even upbeat U.S. economic data such as a 10 percent rise in
existing home sales failed to support the greenback on Monday.
The euro bought $1.3919 EUR= after once again failing to
hold at levels above $1.4000, keeping intact a familiar range
roughly between $1.3700 and $1.4150 seen this month.
"It's tried a few times and failed. People are quick to
lock in profit these days," said Grant Turley, strategist at
ANZ in Sydney.
Against the yen, the euro fetched 112.51 yen EURJPY=,
down from 112.82 yen late in New York and testing short-term
support at around 112.52, Monday's low. It was slipping towards
the lower end of this month's range between 111.54 and 115.66.
G20 PDF file at r.reuters.com/nan99p
For an FX column on the Fed, click on [ID:nLDE69L1EY]
Also on the backfoot, the Australian dollar AUD=D4 eased to
$0.9885, from $0.9904 in New York, a day after coming close to
The Aussie, however, was still seen supported by demand
stemming from corporate merger activities and heightened
expectations of a near-term interest rate hike.
Consumer inflation data due on Wednesday will be closely
watched to see if the Reserve Bank of Australia will indeed
tighten monetary policy.
Markets are pricing in a 52 percent chance of a 25 basis
point rate hike to the 4.5 percent benchmark rate at the Nov. 2
(Additional reporting by Steven C. Johnson in NEW YORK)
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