Another quiet session with fairly tight ranges although there has been some risk aversion most noticeable in the selling of AUD/JPY which has fallen by another 1% this session. Traders have been unwilling to put on any new risk ahead of the G20 and the euphoric buying which greeted the Chinese news last Monday is like a distant memory.

AUD/USD re-tested overnight lows at .8640 before bouncing to .8680 after the Chinese Yuan fix. Those gains were relatively short-lived and it has drifted lower finally breaking below the overnight low late in the session. Ranges: .8622/80.

EUR/USD fell in early Tokyo trade as that’s the typical opening gambit on a ‘risk-off’ Friday but momentum has been lacking. Bearish news continues to emerge for the EUR but the market is short and in short-covering mode, especially against the commodity currencies. Range: 1.2299/1.2339

Cable has been relatively quiet in a 40 pip range and EUR/GBP has also taken a breather after a strong relief rally during the NY session. Ranges: 1.4919/59, .8237/65

USD/JPY has yet again had a paltry 20 pip range but its inability to bounce will be troubling many people. Range: 89.49/71, EUR/JPY 110.24/64

Markets: Nikkei -1.6%, Kospi -0.7%, Sydney -1.2%, HK -0.7%. Gold and oil steady at $1246/oz and $76.50/bbl respectively.