ForexLive US wrap: China joins Europe in the spotlight

Merrill Lynch report highlighting risk of Chinese hard landing along with usual European jitters send stocks, commodities sliding in NY afternoon US durable good orders fall 0.1% in august; capital goods orders rise 1.1% UK foreign minister Hague: Euro will be seen as a moment of collective folly; like a burning building without exits Obama: Europe not dealing with banking system problems as effectively as they need to SNB's Jordan; Euro peg will be defended with all tools; Even if FX losses substantial, won't undermine SNB's ability to conduct monetary policy; euro zone breakup not a credible scenario Spain, Italy extend short-selling ban on financial shares S&P 500 falls 2.1% to 1151 US 10-year note yield rises 1 bp to 1.99% CRB index falls 2.5%; Gold falls $40 to $1610; WTI falls $3.60 to $80.85 The risk roller-coaster continues to gyrate as the market awaits the German EFSF vote tomorrow and the EcoFin meeting early next week. Early optimism that a Greek deal was coming together gave way to fears that China is slowing faster than feared and that Europe is close to an existential meltdown. Against this backdrop, the US looks like an island of calm amidst storm-tossed global waters. EUR/USD fell to session lows of 1.3533, tripping small stops perched belwo the overnight lows of 1.3541 before edging up to 1.3560 late. Commodity currencies were heavily sold in the afternoon, following the commodity complex lower. The CRB fell like a waterfall i the last few hours of trade... AUD/USD ends at 0.9785, USD/CAD at 1.0310 and Kiwi at 0.7775. Despite assurances from SNB VP Jordan that the franc will not be allowed to strengthen, , EUR/CHF ends near the bottom of recent ranges, around 1.2185.