What you need to know on Tuesday, October 5:
The dollar lost some ground on Monday, but no critical levels were affected. Dollar losses were limited as the market mood was sour, with the focus on Evergrande and China’s financial stability.
The EUR / SD pair is currently trading around 1.1620, after encountering sellers in the 1.1640 price zone. The shared currency was among the worst performers against the US dollar. GBP / USD recovered to the 1.3600 level, despite some Brexit-related tensions and fuel shortages.
The USD / JPY pair declined amid poor performance in stocks and declining yields on government bonds. The yield on the 10-year US Treasury closed below 1.50% after testing the level earlier in the day. The Swiss franc appreciated sharply in an environment of risk aversion, the USD / CHF closed at 0.9245
AUD / USD holds most of its intraday gains, trading around 0.7280, while USD / CAD consolidates around 1.2580.
Global indices closed lower as investors saw news coming from China. Evergrande, the troubled real estate giant, has requested a ceasefire over the announcement of a major transaction. The news suggested that the company will sell a majority stake in its property management business for more than $ 5 billion, a sign that the company is still working to cover its $ 305 billion debt.
Australia has a packed macroeconomic calendar, including the RBA’s monetary policy decision.
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