(Changes dateline, adds comment, previous TOKYO)
By Neal Armstrong
LONDON, Sept 1 (Reuters) – The yen’s rise was tempered onWednesday as faster-than-expected growth in Australia’s economyand a rebound in China’s manufacturing sector stabilised shakyequity markets and gave a boost to risk sentiment.
The yen was also knocked after Japanese ruling partypowerbroker Ichiro Ozawa, challenging Prime Minister Naoto Kanin a party leadership vote, said he would implement stepsincluding intervention if the yen rose sharply.
“We’ve seen a reprieve for risk from the data overnight butI’m of the opinion you sell rallies in riskier currencies.” saidKenneth Broux, Markets Strategist at Lloyds Banking Group.
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“The market will keep buying safe havens such as the yen andthe Swiss franc if U.S. data continues to disappoint.”
The Swiss franc pulled back from a record high versus theeuro hit on Tuesday at 1.2850 francs on trading platform EBS, tostand at 1.2900 at 0730 GMT.
U.S. ADP employment data is due for release at 1215 GMT,followed by the ISM Manufacturing report at 1400 GMT, withFriday’s U.S. employment report seen as the key determinant ofrisk of the week.
The dollar was trading with slight gains versus the yen at84.30 yen, off earlier highs of 84.58, though still withinshouting distance of a 15-year low of 83.58 hit on EBS lastweek.
The Australian dollar held gains of 1 percent at $0.9000,helped by a modest bounce in China’s Purchasing Mangers’ Index.
In addition to the fastest growth in three years forAustralian second-quarter GDP, talk of dollar buying by Japaneseinvestors near 84.00 yen underpinned dollar/yen.
Dollar/yen hit the day’s high after Ozawa called formeasures including intervention to cope with the yen’s rise.
Ozawa,
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