* Dollar edges up, euro pares prior gains
* APEC ministers to call for "market-oriented" forex rates
* Aussie dollar hits 15-month high after local jobs data
LONDON, Nov 12 (Reuters) - The dollar rose against the euro
on Thursday as the single European currency fell prey to
profit-taking following its latest failure to cement a break
above the key $1.50 level.
The euro slipped to the day's low of $1.4905, according to
Reuters data, just under technical support around $1.4920.
Still, the single currency held close to that support level, as
the dollar remained on the back foot on expectations U.S.
interest rates will remain low for months.
With little in the way of major economic data and events
scheduled for the European and U.S. sessions, players were
focused on a meeting of Asia-Pacific leaders and other Asian
regional issues, including a visit to China next week b U.S.
President Barack Obama.
The latest draft of a post-meeting communique from APEC
finance ministers called for "market-oriented" exchange rates
and interest rates -- effectively an argument for local
currencies to appreciate against the dollar. []
Some analysts said the focus on Asian currencies was also a
factor capping gains in the euro on Thursday.
Pressure on China and other Asian countries to revalue their
currencies "could take away some of the upside pressure on the
euro," said Marcus Hettinger, currency strategist at Credit
Suisse in Zurich.
The euro offered limited reaction to a slight rise in euro
zone industrial output, which affirmed the view that Friday data
would show the 16-member bloc officially emerging from
recession.
By 1251 GMT, the euro was down 0.4 percent at $1.4920
<EUR=>. On Wednesday, it rose as high as $1.5049 on trading
platform EBS.
The dollar index <.DXY>, a gauge of the greenback's
performance against six major currencies, rose 0.3 percent on
the day to 75.368. It hit a 15-month low of 74.774 on Wednesday.
The dollar was flat at 89.80 yen <JPY=>.
The Australian dollar <AUD=D4> slipped slightly on the day,
but stayed near a 15-month high of $0.9370 hit in early trade
after strong Australian jobs data again fuelled bets for a rise
in interest rates in December. [] []
CHINA CHANGES
China's central bank, which holds the world's largest
foreign exchange reserves stash of more than $2 trillion, said
on Wednesday it would consider major currencies in guiding the
yuan, suggesting a departure from an effective dollar peg that
has been in place for more than a year. []
Analysts said the move was Beijing's clearest signal yet
that it was close to letting the yuan appreciate after an
18-month hiatus that has frustrated many of its peers.
"The message we draw from the shift in the (Chinese central
bank's) carefully chosen words is that trend decline in the
dollar will no longer be resisted to the same degree," Westpac
said in a research note.
"We expect greater movement on dollar/yuan soon, quite
possibly ahead of Obama's meetings with top Chinese officials
next week and with a European delegation also arriving in China
before year-end," they said.
Market participants expect currencies to be discussed during
Obama's visit to China next week.
(Editing by Nigel Stephenson)
