* US dollar near 2009 low vs euro after better housing data
* Softer world stocks, oil encourage some profit-taking
* Aussie edges lower from 10-month highs after RBA
* Caution ahead of ECB, BoE decisions, US jobs data
(Adds comments, details, updates prices, changes byline)
By Steven C. Johnson
NEW YORK, Aug 4 (Reuters) - The dollar hovered near its
2009 low against the euro on Tuesday as a surprisingly strong
U.S. housing report suggested the recession was waning.
Upbeat U.S. and Chinese manufacturing data had pushed the
dollar sharply lower on Monday, giving investors confidence to
buy foreign currencies and riskier investments, such as stocks
and commodities.
But profit-taking in world stock markets on Tuesday slowed
the dollar's slide, though a 3.6 percent rise in pending U.S.
home sales kept it on the defensive. <For related news click
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"Good news for the U.S. economy is bad news for the U.S.
dollar," said Andrew Wilkinson, senior market analyst at
Interactive Brokers in Greenwich, Connecticut. "In the housing
sector, I think it's safe to say that the immediate future
looks brighter."
The euro was little changed from late Monday at $1.4416
<EUR=> after trading as low as $1.4368. It hit a nine-month
high of $1.4445 <EUR=> on Monday, according to Reuters data.
The dollar edged up 0.2 percent to 95.39 yen <JPY=> while
sterling hit an eight-month high of $1.7004 <GBP=> before
easing back to $1.6938, unchanged from late Monday.
The Australian dollar hit $0.8470 <AUD=>, its highest level
since September, after the Reserve Bank of Australia left
interest rates steady but dropped its easing bias, boosting
expectations of a rate hike this year. It was last up 0.2
percent at $0.8431.
Better-than-expected second-quarter corporate results,
improvement in manufacturing activity in the United States,
China and Europe and loose monetary policies have increased
confidence that the worst of a world recession is over.
That's triggered a rally in world stock markets. The U.S.
benchmark S&P 500 index topped the 1,000 mark for the first
time in nine months on Monday and European shares also hit a
nine-month peak.
But softer metal and oil prices on Tuesday slowed the
advance of commodity-linked currencies such as the New Zealand
<NZD=> and Canadian dollars <CAD=>, which hit 10-month highs on
Monday.
Analysts said investor appetite for risk remains strong but
said forthcoming U.S. unemployment data and policy decisions
from the European Central Bank and Bank of England have
tempered some of the animal spirits a bit for now.
"Dollar sentiment, and the dollar itself, remain fragile,"
said Nick Bennenbroek, head of currency strategy, at Wells
Fargo Bank in New York. "U.S. employment figures likely hold
the key to this week's greenback performance."
(Additional reporting by Vivianne Rodrigues; Editing by
Kenneth Barry)
