LONDON (Market News) - Euro-dollar took a rare turn in the driving seat during Asian trade Thursday, moving higher after stops were targeted above 0.8950. Meanwhile, dollar-yen held in a range as Japanese traders returned to their "Golden Week" holidays.
EURO: Moved higher in Antipodean trade after $0.8950 stops were tripped
-- Some traders note the euro is trading with a firm tone despite recent strong performances in US equity markets and look for this trend to continue for a break of $0.90.
-- Stops were tripped at $0.8950 to $0.8960, traders say.
-- US investment banks seen leading buying interest.
-- However, offers at $0.8980/90 have initially capped the market.
-- Traders say link $0.8980 offers to US banks.
-- Bids seen supporting at $0.8940.

YEN: Sidelined to euro-dollar by return to Japanese holiday.
-- Traders say good orders either side of the market are containing the yen.
-- Bids are noted in dollar-yen at Y121.30/20.
-- However, traders also note stops at Y121.20.
-- Option defence is seen below the market ahead of Y121 and Y120.50.
-- Traders say some large related stops are building under Y121.
-- Euro-yen also sees option defence ahead of Y108.50, traders say.
-- Offers seen at Y121.60.
-- Some additional offers seen to Y121.75.
-- Analysts say the close on Wednesday under Y121.75 gives a bearish signal.

AUSSIE: Hedge fund buying interest ahead of $0.5180 seen supporting
-- Bids said to lie at $0.5185/70.
-- Hedge funds said to have been active in US trade, Wednesday
-- Offers seen at $0.5220/25
-- Some traders also cite option defence ahead of $0.5235
-- However, others claim this option position matures today.