Early risk-off 'FX manipulator' headlines....>

DOLLAR: Early risk-off 'FX manipulator' headlines were countered after the PBoC

said it will auction CNH30bn worth of bills and fixed the USDCNY mid-point below

expectations. The issuing of this debt should reduce liquidity which has seen to

underpin the local Chinese currency.

- USDJPY witnessed a volatile session, the pair recovered off session lows of

Y105.52 to Y107.09, before fading at the European crossover. Last Y106.65/70.

- The DXY briefly traded under the 100-dma (97.30) to 97.20, before staging a

recovery to hold 97.55/60. Initial resistance is seen at 97.86 from the 38.2%

retracement of the Aug fall, a break opens the 98.00/10 zone which has

registered a series of hourly highs/lows.

- Early risk-off saw gold further extend to multi-year highs of $1474.93, but

has given back some gains. Last $1460.60. The 50% long-term retracement comes in

today at $1484, expect protection behind ahead of the psychological $1500 level,

a break opens the monthly trend channel top around $1508.

- Brent & WTI witnessed a sharp bounce off traded lows as risk assets regained

poise. Light on the US calendar today, Fed's Bullard is due to speak at 1705GMT.