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Asia Forex news roundup: Evergrande’s $45 million payment is due today

  • 29 September, 2021
  • 3:36 pm EEST

Asia Forex news roundup: Evergrande’s $45 million payment is due today.

Wednesday, September 29, 2021, Forex news for Asia trading will be :

Regional equities were pounded lower Wednesday, following Wall Street’s worst day since May of this year on Tuesday. There has been a lot of discussion about rising interest rates, higher energy prices, scarcity, the US debt ceiling, Evergrande, and other topics. However, Asian stock markets are often (but not always) like dogs on a leash when it comes to Wall Street.

The major currencies tracked somewhat narrow ranges. The New Zealand dollar fell against the US dollar as the number of coronavirus infections recorded for the day increased. The RBNZ meets next week, and the increase in new cases to a near-month high has led some anxiety that the Bank will postpone another rate hike. NZD/USD did not stay down for long, and as nerves settled, it retraced some of its losses. Alongside, the AUD/USD fluctuated in a similar fashion. The EUR/USD traded a few points higher despite no noteworthy news.

USD/JPY rose beyond its overnight high but failed to hold, falling back 20 or so points. Later today, Japan time, the party will vote for a new leader (who will then be a shoo-in for the next Prime Minister).

Oil traded the opposite day to Tuesday, and it is currently at a session low as I write this. Gold gained a few dollars, while BTC/USD briefly fell below $41,000 before recovering.

A payment for an Evergrande coupon is due today, with a grace period of 30 days.

 

Major indices all closed sharply lower

  • The NASDAQ index got hammered today with a decline of -2.83%.
  • It was the worst day since March 18.
  • The NASDAQ index has closed lower for the third consecutive day
  • The S&P index fell 2% on the day and it was its worst day since May 12.
  • The energy sector was the only gaining sector in the S&P
  • Technology was the worst performer
  • The Dow industrial average is down around 650 point at the lows.
The catalyst is rising treasury yields.  The 10 year yield is up 5.9 basis points. The 30 year bond is up 9.2 basis points.

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