London, May 2 (BridgeNews) - The following is a summary of overnight moves since Europe's close, plus possible leaders for the session ahead: KEY ISSUES:

* USD on defensive, but all eyes on euro zone April manufacturing PMI data
* FT reports Germany backs out of EU corporate take-over code
* BOE's George says surprised by weak performance of U.K. economy in Q1
* RBA leaves cash rate at 5.0%, as expected

--The USD remained on the defensive overnight, briefly extending Tuesday's losses against most of its rivals. But with all eyes on whether the euro zone's manufacturing purchasing managers' index for April can remain above the break-even 50-level, the upside on EUR/USD at least may remain limited.
--As usual, USD/JPY was the focus in Asia. It briefly extended its recent correction to an 8-day low of 121.60. A combination of profit-taking and short-covering then pushed the pair back up to 122.22. But fresh pressure could come from a report in the Financial Times newspaper that U.S. banks--led by Morgan Stanley and Goldman Sachs--are quietly raising capital to invest in Japan's distressed property and corporate loans markets. The Nihon Keizai Shimbun quoted Japanese Finance Minister Shiokawa as saying he was open to the idea of injecting public funds into financial institutions if it helped them speed up the disposal of bad loans. On the data front, Japan's monetary base grew at an annual rate of 1.4% in April, up from 1.2% in March.
--EUR/JPY dipped alongside USD/JPY to an 8-day low of 108.65.
--EUR/USD, in contrast, extended Tuesday's rise to a 5-day high of 0.8947.
But apart from the euro zone PMI data at 0800 GMT, the pair could feel some heat from a report in the Financial Times that Germany has backed out of an agreement to establish an EU corporate take-over code. Italian March producer prices data are due 0700 GMT, ECB's Noyer speaks at 0930 GMT and the ECB publishes its annual report at 0945 GMT. In the U.S., Fed's Meyer speaks from 1330 GMT, March factory orders, the April non-manufacturing NAPM survey and the Chicago Fed's national activity index are all available from 1400 GMT.
--USD/CHF dipped to a 2-day low of 1.7240 in Asia but remained cushioned by a firmer EUR/CHF. Swiss April CPI data have just come in a shade stronger-than-expected at up 1.2% on the year due to higher energy costs.
Switzerland's manufacturing purchasing managers' survey for April is due around 1300 GMT.
--Cable nudged a 2-day high of 1.4374 in Asia, but could come under some pressure from BOE Governor George's admission late Tuesday he was "surprised by the weak performance" of the U.K. economy in the first quarter. That said, the International is bidding 1.85 billion GBP for the Le Meridien hotel chain of U.K.'s Compass. U.K. March consumer credit data are due 0830 GMT and the CBI's retail sales survey at 1000 GMT.
--USD bloc currencies extended Tuesday's gains. AUD/USD hit an 8-week high of 0.5212 after the RBA left its cash rate at 5.0%. NZD/USD touched a 6-week high of 0.4215 and USD/CAD brushed a 2-month low of 1.5307. BOC Governor Dodge said late Tuesday the BOC's policies would boost the CAD in the "long-term."