* Yen advances as Goldman news spurs risk sell-off
* Dollar also gains on euro, sterling, Aussie
* Aussie at lowest in 3 weeks vs yen, CFTC shows longs up
By Charlotte Cooper
TOKYO, April 19 (Reuters) - The low-yielding yen rose to its
strongest levels this month on Monday, gaining on higher-yielders
such as the Aussie dollar as investor appetite for risk took a
hit on fears about broader fallout from charges against Goldman
Sachs.
With data showing a buildup in speculative long positions on
the Australian dollar earlier in April, and in short positions on
the yen, analysts said the market had probably been ripe for a
correction in pro-risk trades after a run higher over the past
couple of months.
The U.S. dollar, also a low-yielder considered a safe-haven
currency, extended its gains against sterling, the euro and the
Aussie after the Australian currency staged its biggest drop
since early February on Friday.
Goldman Sachs Group Inc <GS.N> was charged with fraud by the
U.S. Securities and Exchange Commission on Friday in the
structuring and marketing of a debt product tied to subprime
mortgages, rattling financial markets. [].
Germany and Britain will also seek details from the SEC as a
prelude to potential legal steps, while the market is nervous of
what this could mean for stricter regulation. []
Traders said currencies traded against the dollar and yen
felt heavy, with figures from the Commodity Futures Trading
Commission showing speculative net long positions in the
Australian dollar at their highest in three years. []
"What is there to reassure markets and provide that good news
to turn around the negative risk environment? It's not clear that
there's anything positive coming," said Robert Ryan, currency
strategist at BNP Paribas in Singapore.
The Australian dollar <AUD=D4> fell 0.6 percent to $0.9178,
touching its lowest in two weeks after shedding 1.2 percent on
Friday, with support expected at its April low of $0.9265.
It hit its weakest since late March at 84.35 yen <AUDJPY=R>
before edging back to 84.44, down 0.4 percent on the day.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Insider FX comment on yen http://link.reuters.com/het38j
Insider comment on yuan http://link.reuters.com/mys38j
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
Others said the impact may not last long.
"What we are seeing is a reaction to the Goldman Sachs
news, but I think this will be very short-lived with investors'
focus likely to return to economic data in the next few days,"
said Joseph Capurso, a currency strategist at Commonwealth Bank.
The CFTC numbers also show yen shorts hit a three-year peak
in the week that ended on April 13, underscoring how stretched
positions were and due for a technical correction.
The dollar slipped 0.2 percent to 92.01 yen <JPY=>, briefly
touching 91.83 yen, its weakest since late March on trading
platform EBS.
One trader said Japanese importers were expected to buy
dollars just below 92.00 yen and support for the greenback was
expected at its 200-day moving average of 91.37 yen.
The euro fell 0.4 percent to 123.88 yen <EURJPY=R> after
shedding 1.5 percent on Friday. Near-term support is seen around
123.40 yen, its April 8 low.
The euro also fell 0.4 percent to $1.3457 <EUR=>, trading at
its lowest levels since April 9.
Near term support for the euro is expected at $1.3430, a 61.8
percent retracement of the move up from its March low of $1.3267
to its April high of $1.3692.
Investors are worried about the fate of a European Union-IMF
aid plan to help Greece avoid a debt default. Talks with EU and
IMF officials expected to start on Monday have been delayed to
later in the week due to the cloud of volcanic ash disrupting
flights across Europe, Greece said. []
"That just means there's more uncertainty as to what's going
to happen there," Ryan at BNP Paribas said.
Investors also remain vigilant for the possibility that China
might revalue the yuan soon.
The dollar index <.DXY>, a measure of its performance against
six other currencies, rose 0.3 percent to 81.04, although it
remains well below a 10-month high at 82.240 set in March.
The pound <GBP=D4> fell 0.7 percent to $1.5250 on persistent
concerns that Britain's general election will produce no clear
winner. The election is on May 6 and opinion polls indicate
growing support for the Liberal Democrats, the third party in the
race. []
(Additional reporting by Anurban Nag in Sydney and Satomi
Noguchi and Kaori Kaneko in Tokyo; Editing by Joseph Radford)
