* Solid data, lack of verbal intervention help Aussie
* Commodity-linked major currencies up 10 pct since January
* Yen strong after Kuroda points to problems of negative
* Dollar and euro steady, eyes on Fed speakers this week
By Patrick Graham
LONDON, Sept 6 Australia's dollar was the
biggest gainer among major currencies as U.S. and European
traders returned from summer holidays on Tuesday, jumping almost
1 percent after the country's central bank said little on its 10
percent rise since January.
The dollar, euro and yen were all trading in tight ranges
after a surge for the yen on the back of comments by Bank of
Japan Governor Haruhiko Kuroda which acknowledged the problems
created by running negative interest rates.
Data on Australian government spending and its current
account deficit pointed to solid economic growth last quarter,
and the Reserve Bank of Australia as expected kept interest
rates on hold.
At Governor Glenn Stevens' last meeting, the bank made
little reference to the concerns over the Aussie's strength that
have spotted the last two years of policymaking.
"Domestic and global growth along with inflation was the
headline (rather than the dollar)," said Tobias Davis, Head of
Corporate Treasury Sales with Western Union in London.
"One perhaps could have expected some more discussion of the
currency, but we probably need to get back above 0.80 for verbal
invention to come back into flavour."
In morning trade in Europe, the Aussie traded as much as 0.9
percent higher at $0.7655.
The U.S. dollar was trading at 103.67 yen, having
fallen from Friday's one-month high of 104.32.
With dealers and investors searching for the currency trade
that will dominate the next month or two, upward pressure on the
yen continues in the absence of much clarity on the chances of a
rise in U.S. interest rates by the end of the year.
Though Kuroda signalled his readiness to expand an already
massive stimulus programme in his speech on Monday, he did not
provide any explicit hints on the chances of the BOJ
aggressively easing policy at its next review on Sept. 20-21.
In addition, many analysts noted that Kuroda admitted for
the first time that his stimulus drive has its costs, even
though he disputed the view that the BOJ's stimulus is reaching
its practical limit.
"For those who had been believing in a Kuroda who stresses
only the benefits of easing, the speech would have been
disappointing," said Makoto Noji, senior strategist at SMBC
"To be sure, he is unlikely to change his policy framework
given that he was preaching the benefit of stimulus. Yet many
market players might have felt that the costs are likely to
outweigh the benefits in the future," he added.
(Additional reporting by Hideyuki Sano in Tokyo Editing by