* Dollar rises to one-month high above 108 vs yen
* Greenback maintains momentum gained from upbeat U.S. data
* Crude oil prices, U.S. payrolls data eyed for direction
* Aussie slips after ANZ issues profit warning
By Shinichi Saoshiro
TOKYO, July 28 (Reuters) - The dollar rose to a one-month
high above 108.00 yen on Monday, riding on momentum gained from
better-than-expected U.S. data on capital spending and home sales
late last week that lifted some of the gloom over the economy.
Hopes have risen for stability in the battered U.S. housing
market after Congress passed a rescue package that was expected
to be signed soon by President George W. Bush, sparking a rebound
in the shares of U.S. banks and mortgage financing companies over
the last two weeks.
The package will set up a $300 billion fund to help hundreds
of thousands of troubled homeowners and end the deepest housing
slump since the Great Depression. []
The sharp retreat in oil prices from record highs has also
given investors hope that the global economy can muddle through
the U.S. economic downturn stemming from the ongoing slide in
housing prices.
Analysts are looking to two key U.S. economic reports later
this week, including the monthly payrolls data on Friday, to see
whether the dollar can build on its recovery from a record low
struck against the euro earlier in the month.
"The dollar's recent fortunes have been dependent to a large
degree on economic indicators, and a weak reading in U.S.
payrolls could turn the tide against the dollar again," said
Masaki Fukui, senior market economist at Mizuho Corporate Bank.
The dollar was little changed from late U.S. trade on Friday
at 107.80 yen <JPY=> after hitting 108.08 yen on trading platform
EBS. Japanese exporters, who are seen to have orders lined up to
sell the dollar above 108 yen, have also moved into focus.
The euro was nearly flat against the dollar at $1.5715
<EUR=>. European corporate earnings due this week may provide
some direction for the single currency, traders said.
The yen held near a record low against the euro near 170 yen.
A recovery in global stock markets has taken a toll on the
low-yielding yen, as investors have favoured carry trades --
selling the yen to buy higher-yielding currencies and assets.
Japan's Nikkei share average <> edged up 0.3 percent on
Monday after having racked up its biggest weekly gain in five
months last week, and other Asian equity markets were mostly
higher on the day.
PAYROLLS A TURNING POINT
Before the jobs figures, second quarter U.S. GDP will be
released on Thursday that may also test the dollar's resilience.
The economy is forecast to have grown at an annualised pace of
2.0 percent, thanks in part to the stimulus from tax rebate
checks sent to households.
But the payrolls report is expected to show a loss of 75,000
jobs in July, in what would be the seventh straight month of
decrease.
"Payrolls will be the next potential turning point for the
dollar. Downbeat jobs results would offset any positive aspects
of the previous day's second quarter U.S. GDP, which is likely to
show decent growth thanks to tax rebates," said Tomoko Fujii,
head of economics and strategy at Bank of America.
"But weak employment numbers may lead to talk that tax
rebates were premature."
The Australian dollar dipped 0.1 percent to $0.9554 <AUD=D4>
in response to news that Australia and New Zealand Banking Group
<ANZ.AX>, Australia's third-biggest lender, issued a profit
warning on Monday.
The group forecast more than $1 billion in bad debt charges
as the global credit crisis starts to hurt Australia's previously
buoyant banks. []
On Friday, the country's largest lender, the National
Australia Bank <NAB.AX> said it was writing off $798 million in
credit market-related losses.
(Editing by Edwina Gibbs)
