FOREX-Euro slips vs dollar, Aussie hits 29-yr high

The euro eased on Monday and could fall toward mid-March lows after a state election loss by Germany's ruling party raised doubts about the tackling of Europe's debt crisis, while the dollar was aided by hawkish comments from Federal Reserve officials.

 The higher-yielding Australian dollar AUD=D4, hit a 29-year peak of $1.0307, breaking past option barriers at $1.03. The recent yen-weakening intervention and stronger risk appetite were factors underpinning the Aussie's rise, traders said.

 For the euro, the failure to break through option barriers around $1.4250 last week saw some paring in speculative long positions, although support around $1.4015/35 appeared to be holding for now with bids by Asian central banks around $1.4030 were also cited.