SYDNEY, Australia - September 13, 2010 - Get set for an outbreak of currency wars with the potential to shake global confidence as markets move towards the volatile October period.

The long-standing debate between China and the U.S. is again at a flashpoint, while Japan is aggrieved that China's central bank is pushing up the value of the yen.

The investors' flight from the euro may also gather speed under renewed concerns over the sovereign risk.

The Australian dollar, which is being pushed higher as investors assess the strength of Australia's economy and the prospect of further rate rises, is set to be buffeted by changing market assessments of risk.

A confluence of international meetings over the next six weeks will elevate market concerns into the political domain.

The International Monetary Fund is meeting in Washington early next month, followed by the G20 finance ministers and central bank governors later in the month, and the G20 leaders' summit in Korea in early November.