[achiever]

Markets continued in risk reduction mode early in the overnight session as we saw mainly USD buying, with USD shorts covering positions across the board. Risk markets started to claw back later in the session as one of the China PMIs came out very strong, printing near the all time high, and drafts leaked from the G20 meeting suggested countries would keep stimulus levels high. GBP closed below the critical 1.6100 – 50 support band, increasing risks to the downside. Key levels of support to watch are the Asian overnight low of 1.5917 and then the June lows of 1.5803. EUR moved as low as 1.4614 overnight in Asia but is now back above the 1.47 level. On the data front today watch out for US new home sales and the Michigan Consumer Confidence. Focus will also be on the G20 meeting in Pittsburgh. Risk takers will be looking for a continuation of the dovish tone heard back at the Jackson Hole meeting.