* Euro's downtrend remains intact on structural concerns
* Risk appetite rises; Australian dollar hits 1-month high (Adds quotes, updates prices, changes byline, changes dateline, previous LONDON)
By Wanfeng Zhou
NEW YORK, June 14 (Reuters) - The euro rose broadly on Monday as gains in global stock markets lifted risk appetite and prompted traders to pare back bets against the single euro-zone currency.
The euro moved further away from a recent four-year low to trade above $1.2250 -- its highest in more than a week. Stronger-than-expected euro zone industrial output further boosted the currency.
European equity markets .FTEU3 touched a four-week high and U.S. stock futures gained SPc2, following rises in Asia.
Despite Monday's bounce, analysts cautioned that the euro's downtrend remained intact as concerns about the banking sector and the structural problems in the euro zone are likely to persist for some time.
Euro-dollar is performing well, following better than expected industrial production data, and in a reflection of the lessening degree of risk-aversion in today's market, said Sacha Tihanyi, currency strategist at Scotia Capital in Toronto.
We have seen this kind of thing happen before, only to be surprised once again to the downside. We still see weakness and a bit of a grind lower in euro-dollar, he added.
In early New York trading, the euro EUR= rose 1.3 percent to $1.2265, after hitting the day's high of $1.2273, according to electronic trading platform EBS. Last week, the single currency reached as low as $1.1876, its lowest since early 2006.
Traders said hedge funds had been seen cutting short positions in euro-dollar on a break of $1.2150/60 in Asia and then through $1.2220 in Europe.
Technical analysts were looking for a close above the 21-day moving average at $1.2234 for the first time since mid-April. Additional resistance levels were highlighted at $1.2330 and $1.2445, the 2008 and 2009 lows.
Commodity Futures Trading Commission data showed speculators boosted their bets against the euro in the week ended June 8, although net short positions were below record levels. [IMM/FX]
The positioning is not extreme, but there is room for a rebound in the euro from here. Our one-month forecast is for a move to $1.25, but after that we expect it to go down, said Derek Halpenny, European head of currency research at BTM-UFJ.
Despite Monday's gains, the euro is still down almost 15 percent against the dollar this year.
The euro also jumped 1.5 percent to 112.66 yen EURJPY=, while the dollar gained 0.2 percent to 91.86 yen JPY=.
Some analysts said risk appetite was also supported by comments from policymakers, including St. Louis Federal Reserve Bank President James Bullard, who said a strong global economic recovery was underway.
The Australian dollar gained 1.5 percent versus the U.S. dollar AUD=D4 to trade at US$0.8628, after touching a high of US$0.8645, the highest level in almost a month.
The Aussie dollar also gained 1.3 percent against the low-yielding yen, which was soft across the board AUDJPY=R, touching its highest in nearly four weeks.
The dollar was down 1.2 percent versus a currency basket .DXY at 86.481. Analysts said the greenback could be undermined by U.S. President Barack Obama and his aides calling for more stimulus to support the economy, which could stir worries about the U.S. fiscal deficit.
Sterling received a boost after the UK's newly created Office for Budget Responsibility said it expected government borrowing to fall slightly faster than originally thought.
The pound was last up 1.5 percent versus the dollar GBP=D4 at $1.4762. The euro was down 0.2 percent at 83.03 pence EURGBP=. (Additional reporting by Neal Armstrong in London; Editing by Padraic Cassidy)