|| FOREX NEWS-Euro, Dutch sales provides some exemptions

* The Euro is maintained in outlook with the concepts of political risks
* Dutch auction sees on justified request
* Two-day FOMC meeting due to start later Tuesday
Nia Williams
LONDON, 24 April, Reuters)-the Euro edged higher against the dollar Tuesday after the auction, fixed the Dutch debt temporarily eased fears that the fall of the Government of the Netherlands would spook investors, but the risk of mounting political concepts currency outlook.
The Netherlands sold 1.995 billion two-year and 25 bonds, approximately in the middle of the destination range, one day after Prime Minister Mark Rutte resigned in crisis over budget cuts.
Investors were nervous about signs of political upheaval in one euro area several other economies rated AAA. The Euro had its worst day of the week from Monday, falling over half a percent as concerns the results of France's presidential elections, and the data on the production of bearish inserted Dutch concern.
It increased 0.2 percent Tuesday to $ 1.3184, paring losses from the previous day, when the disappointing PMI data in the euro area, pushed it into the low $ 1.3103.
Currency, however, remains an excellent range of approximately between $ 1.28 and $ 1.33, it has traded since the beginning of April. Traders cited talk offers $ 1.3110 and lower level $ 1.3070 and offers from Middle East investors $ 1.3180.
"More talks about the resilience of the euro that is spooking some people from the game below over the short term, but there is a significant risk for the future," said Derek Halpenny, head of European research of the currency at the Bank of Tokyo-Mitsubishi.
Ratings agency Moody's said that the collapse of the Dutch Government, after agree to cuts of budgetary austerity was negative credit, although they maintained the country three times and classification. Fellow agency Fitch warned last week that was on the verge of taking action on the negative rating.
Many investors were also concerned about events in France, where Socialist Party François Hollande, who has promised to renegotiate the European budget Pact-won the first of France's presidential elections on Sunday.
A second round of a French presidential election is May 6, the same day that Greece elects a new Government, while Ireland faces a referendum compact fiscal Union later in May.
"How can we move to may and June we hear further volatility and turmoil, which we believe will see the euro breaks below $ 1.30," Halpenny said.
RESISTANCE EUR
The Federal Reserve of the United States starts a two-day policy meeting Tuesday. When the bar is set high in another round of stimulus, the market will be keeping Close eye on politicians, given the still fragile economic recovery in the U.S..
Some analysts attributed the last resistance of the euro against the dollar to decline in the yields of Treasury on the weaker economic data which has been compressed a discrepancy between the U.S. ten-year government bonds and their equivalent of the German.
The apparent inability of the common currency break on both sides of the range meant further consolidation was possible, they said, although the return of tension around the debt problems, few are optimistic about the euro in the long term.
"We expect the euro/dollar to resume the worsening trend in the coming weeks, with a break of $ 1.30 to open commercial target 1.25 within the horizon of the month 2-3," said Jens Nordvig, global head of FX Strategy at Nomura Securities.
Australian dollar hits a low two weeks against the US dollar after soft inflation data fuelled expectations of cuts in interest rates by the Reserve Bank of Australia.
Aussie was 0.3% in US $ 1.0286. Previously fell to a session low of US $ 1.0247 for data showing consumer prices Australian climbed less than expected in the last quarter when underlying inflation posted the smallest increase in a decade.
Figures paved the way for a rate Cut by the RBA next week and suggested further cuts later in the year. Central Bank of Australia earlier this month it would be advisable to consider cutting rate of 4.25% of the cash in the policy may 1 meeting, provided that the numbers of inflation was tame.
Safe haven Yen was broadly constant, near the market flat against the US dollar in Yen 81.14.

FOREX NEWS-Euro resilient; Aussie eyes RBA rate decision

* Markets appear optimistic that Greece will secure rescue deal
* Athens baulking at accepting painful terms for new package
* Aussie holds firm in face of possible rate cut by RBA
By Ian Chua
SYDNEY, Feb 7 (Reuters) - The euro held steady in Asia on Tuesday as markets remained sanguine that Greece will eventually clinch a rescue package, even as the country's political leaders delayed their decision to accept painful terms by yet another day.
Failure to secure the 130 billion euro ($170 billion) rescue would risk pushing Athens into a chaotic debt default and destabilise the entire euro zone, an outcome deemed too extreme to contemplate.
That was seen keeping euro bears restrained for now at least, resulting in a volatile but resilient single currency. It stood at $1.3122 on Tuesday, little changed from late New York levels. A recovery from $1.3026 overnight kept the common currency within reach of a six-week peak around $1.3230 set last week.
Only a clear break of $1.3020 would see the euro move to $1.2930-50, the Jan 25 low and then to $1.2855-75 the 61.8 percent retracement of the $1.2624-1.3233 rally in January, traders said.
Still, without a clear outcome for Greece, the euro will remain choppy.
"The stalemate among the three political parties comes ahead of the April elections, implying that this in large part could be domestic politicking," analysts at BNP Paribas wrote in a note. "As these talks continue, the euro will likely remain vulnerable to any headline risk."
The euro's resilience saw the dollar index retreat to 79.076, from a session high of 79.516, still uncomfortably close to an 8-week trough of 78.623 plumbed on Feb 1.
Against the yen, the dollar was steady at 76.55, taking a breather after creeping up from 76.20 on the back of upbeat U.S. jobs data last Friday.
Among commodity currencies, the Australian dollar is the one to watch ahead of the Reserve Bank of Australia's (RBA) rate decision due at 0330 GMT. It stood at $1.0720, near a six-month peak set last week.
Interbank futures imply a 56 percent chance of a 25 basis point cut to the 4.25 percent cash rate, while many analysts polled by Reuters believe the RBA has room to cut given a benign inflation environment.
"The RBA may well take advantage of an overbought AUD/USD to squeeze it lower by proving more dovish than expected," said Sebastien Galy, strategist at Societe Generale.
"The washout should be an opportunity to sell the downside in AUD/USD as it is likely to remain very much bid as a high yielding currency in an environment of extremely low yields and this in spite of deteriorating fundamentals."
Should the RBA surprise by leaving rates unchanged, the Aussie could re-test Friday's peak and then target the 29-year high of $1.1081 set in July.

FOREX NEWS-euro rises to short squeeze but flat rally

 * euro rises to two-week high versus the dollar and yen * stop-losses lurking above, scope for further short squeeze * Spain bond sale adds to optimism but debt caution persists by Neal Armstrong LONDON, Jan 19 (Reuters) - the euro rose on Thursday, supported by a solid Spanish debt auction and cautiouslypositive risk appetite which could spur a further squeeze ofshort positions, but brief rallies were unlikely to break thesingle currency's downtrend. Spain than its announced target, went in to auction whichanalysts said well sold 6.61 billion euros of government bonds onThursday, more, supported by domestic banks and apickup in appetite for riskier assets. That ensured the euro retained support after hittingtwo-week highs versus the dollar and the yen in earlier trade. Hopes the IMF could boost its resources to help countriesdeal with the euro zone debt crisis and some optimism over talksto avoid a chaotic Greek default were adding to the positivetone. "We think the ongoing short squeeze we've seen in the eurothis week can continue." "The newsflow we are seeing is reasonablyencouraging for risk with the IMF headlines yesterday and hopesgrowing over the Greek restructuring talks," said Tom Levinson, currency strategist at ING. Talks between Greece and its creditors are proceeding, butmuch more progress is needed before a bond swap to reduce thecountry's towering debt pile is reached, three sources close to the talks said. The euro what up around 0.3 percent on the day at $1. 2898after traders said stops were triggered on the break of Friday'shigh of $1.2879 en route to a two-week high of $1.2914 on EBS.More stops were scattered above $1.2900, with scope for anothersqueeze of positions and a test of the Jan. 5 high of $1.2946. A daily close above the euro's 21-day moving average at$ 1.2875 would be a positive technical sign, while traders saidan Asian sovereign account sold around the day's high. "The market is lik less short euros than it what itis but still short and there is scope for a bit of a squeeze fromhere," said Chris Walker, currency strategist at UBS. The euro moved further away from Friday's 17-month low of$ 1.2624, with bids reported at $1.2840 and downside stop-lossesthrough $1,2800. Against the yen, the euro fetched 98.95 yen afterhitting a two-week high of 99.05. it has gained more than 2percent since hitting to 11-year low of 97.04 on Monday. Still, uncertainty over the euro zone debt crisis wouldcontinue to weigh on the euro and upticks were unlikely to lastlong. "We're not looking for a large rally in the euro and stickwith our forecast of $1.20 by the middle of the year," saidLevinson. The euro hovered near a four-month low of $1.2062 Swissfrancs, within sight of the Swiss National Bank's 1. 20floor which is likely to be strongly defended if threatened by arenewed attack on the single currency. RISK APPETITE news that the International Monetary Fund is seeking to morethan double its $600 billion in newresources to help was chest countries deal with fallout by raising from the euro zonedebt crisis improved risk appetite. Risk appetite which also helped by gains on Wall Street afterGoldman Sachs' earnings exceeded analysts' direction expectation expectations, eventhough they fell sharply, and dispelled some anxiety over bankprofits, though equity futures were treading water. This week's recovery in the euro helped push the dollarindex to two-week lows at 80.274, down 0.3 percent andrecoiling further from a 16-month peak of 81.784 hit on Friday. Against the yen, the dollar what little changed at 76.70 yen. Traders though had one eye on next week's Bank of Japanpolicy meeting for potential action on the Japanese currencygiven its recent 11-year high versus the euro and its proximityto record highs versus the dollar of 75.31. The high-yielding Aussie dollar slipped to a session lowof $1.0371 after data showed a surprise fall inAustralian unemployment in December. The Aussie slipped away from an 11-week high of $1.0450 seton Tuesday, so falling below its 200-day moving average at$ 1.0407, before steadying at around $1.0400. © Thomson Reuters 2011. all rights reserved.