* Dollar dips vs euro, Aussie as Asian stocks rise
* Dlr's direction swings with U.S. yields rise
* Market eyes BBA's expected change on Libor later
By Kaori Kaneko
TOKYO, June 19 (Reuters) - The dollar fell against the euro and the Australian dollar on Friday trimming the previous day's light gains after reassuring U.S. data supported regional stock markets.
Asian stocks rose after U.S. data on Thursday showed the number of people on jobless benefits fell for the first time since January, while manufacturing in the U.S. Mid-Atlantic region contracted much less than expected in June.
But gains in the euro and the Aussie were limited as the market has struggled for direction this week, with investors assessing whether a three-month long rally in riskier assets has gotten ahead of itself while the global economy is still struggling.
"The euro's battle to rise much higher against the dollar suggests to me that the market remains unsure about the green shoot story," said Hideki Amikura, deputy general manager of the forex section for Nomura Trust Bank.
The euro was up 0.2 percent at $1.3932 but stayed below Thursday's high of $1.4002 on trading platform EBS and below its 2009 peak of $1.4339.
Investor are swinging between optimism about an economic recovery which in turn would boost shorter-end U.S. yields as well as the dollar, and concerns about U.S. bond supply which have lifted long-term yields but hurt the dollar instead.
The dollar gained on Thursday helped by chart-based trading and news of a change in the definition of the London interbank offered rate which raised speculation that yields on U.S. investments would move higher.
The amendment is expected to be announced and implemented on Friday and analysts said more details were needed to make clear the impact, if any, on the currency market.
The dollar edged up 0.1 percent to 96.65 yen, holding firm after Wall Street gained the previous day to break a three-day losing streak and prompted traders to cover their yen long positions across the board.
The yen rose to multi-week highs against other currencies earlier this week as investors reduced riskier bets on higher-yielding units such as the Australian dollar.
Tokyo's Nikkei share average rose 0.9 percent, while oil steadied above $71.
Higher-yielding currencies rose with the Australian dollar rising 0.6 percent to $0.8049 and the New Zealand dollar up 0.1 percent at $0.6396.
"The market mood overall is not necessarily bad. With the market consensus that panic trading is over, some have started trading on interest rate differentials," said Mitsuru Sahara, chief manager at Bank of Tokyo-Mitsubishi UFJ.
The Swiss National Bank held interest rates at a record low on Thursday, and SNB governor Jean-Pierre Roth said he would continue to stop an irrational rise in the Swiss franc.
The euro was steady against the Swiss franc at 1.5104 francs after climbing as high as 1.5149 francs on EBS on Thursday. (Additional reporting by Satomi Noguchi; Editing by Edwina Gibbs)