FOREX-Aussie rallies as relief from Evergrande bolsters investor sentiment

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Band Hideyuki Sano

TOKYO, September 22 (Reuters)The Australian dollar surged and the safe haven yen eased slightly on Wednesday after struggles by Chinese real estate giant Evergrande 3333.HK said he would make an upcoming bond coupon, immediately allaying fears of a messy business collapse.

However, some of the excitement died down after traders realized it was still unclear whether the developer would be able to pay the coupon on its offshore dollar bonds due Thursday.

The Australian dollar rose 0.49% to $ 0.7268 AUD = D4 before giving up some of the gains to trade at $ 0.7247, up 0.2% on the day. The yen weakened about 0.2% to 109.485 per dollar JPY =, showing little reaction to the Bank of Japan’s decision to keep its policy on hold.

Investors are still concerned about the fate of Evergrande, which failed to pay interest owed Monday to at least two of its largest bank creditors, Bloomberg reported.

“The market reacted to the announcement of the coupon payments, but it looks like it’s just coming out of the frying pan into the fire,” said Teppei Ino, senior strategist at MUFG Bank.

The dollar index stood at 93.226 = USD in early Asian trade, remaining near Monday’s one-month high of 93.455.

The euro barely budged at $ 1.1725 EUR =, stabilizing at a one-month low of $ 1.1700 on Monday.

Earlier, the common currency fell to a seven-month low of 127.93 yen, as the safe haven Japanese currency was supported by the cautious mood.

The Chinese Yuan was fairly stable, strengthening slightly to 6.4748 per dollar in offshore trading CNH =, falling from a one-month low of 6.4878 set on Monday.

The onshore yuan has traded at similar levels, down slightly from its Friday close before a long weekend, at 6.4715. CNY = CFXS.

LIFTING THE FEED

Another major focus for the day is the US Federal Reserve, which is expected to give more guidance on its future political direction, including when to start cutting bond purchases and when to start raising interest rates.

There are rising expectations that the central bank will signal its intention to start cutting back on its massive bond purchases in November if the incoming data holds.

The so-called “dot plot”, which plots the economic and rate projections of policymakers, could offer clues as to when the Fed will raise interest rates from the current near zero level.

“Maybe the tapering is already in place. What will matter most to the forex market is how dotplots or Powell’s comments will affect US rate expectations,” JP Morgan’s Sasaki said. .

Elsewhere, the Canadian dollar was little changed, slashing gains on Tuesday after Prime Minister Justin Trudeau’s Liberals won a hotly contested election.

Cryptocurrencies rebounded a bit after the plunges of the previous session.

Bitcoin rose 3.8% to $ 42,134 after hitting a low of $ 39,573 in 1.5 months. Ether gained 3.7% to $ 2,868, after falling to $ 2,732 ETH = BTSP, down more than 30% from a four-month high reached earlier this month.

The United States on Tuesday unveiled sanctions against a cryptocurrency exchange for its alleged role in activating illegal payments from ransomware attacks.

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Currency bid price at 0256 GMT

The description

RIC

Last

US Close previous session

PCT change

Percentage change for the current year

High offer

Low offer

Euro dollar

EUR = EBS

$ 1.1725

$ 1.1726

+ 0.00%

-4.03%

+1.1730

+1.1717

Dollar / Yen

JPY = EBS

109.4200

109.1900

+ 0.16%

+ 5.89%

+109.4800

+109.1200

Euro / yen

EURJPY = EBS

128.29

128.06

+ 0.18%

+1.08%

+128.4000

+127.9400

Dollar / Switzerland

CHF = EBS

0.9240

0.9236

+ 0.04%

+ 4.43%

+0.9245

+0.9238

Pound sterling / dollar

GBP = D3

1.3659

1.3661

-0.02%

-0.03%

+1.3678

+1.3653

Canadian dollar

CAD = D3

1.2794

1.2812

-0.13%

+ 0.48%

+1.2826

+1.2775

Australia / Dollar

AUD = D3

0.7250

0.7233

+ 0.24%

-5.75%

+0.7268

+0.7225

New Zealand dollar / Dollar

NZD = D3

0.7017

0.7005

+ 0.20%

-2.26%

+0.7031

+0.6994

All spots FX =

Tokyo spots AFX =

Points of Europe EFF =

Volatilities VOLFX =

BOJ Tokyo Forex Market Information TKYFX

Global exchange rateshttps://tmsnrt.rs/2RBWI5E

(Reporting by Hideyuki Sano; Editing by Sam Holmes)

(([email protected]; +81 3 4520 1195;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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