Forex Today: Dollar pares losses

Valeria Bednarik FXStreet

What you need to know on Tuesday, October 5:

The greenback shed some ground on Monday, but no critical level was affected. Dollar losses were limited as the market’s mood was sour, with the focus on Evergrande and China’s financial stability.

The EUR/USD pair currently trades around 1.1620, after meeting sellers in the 1.1640 price zone. The shared currency was among the worst performers against the US dollar. GBP/USD regained the 1.3600 level, despite some tensions related to Brexit and fuel shortages.

The USD/JPY pair edged lower amid the poor performance of equities and lower government bond yields. The yield on the US 10-year Treasury note settled below 1.50% after testing the level at the beginning of the day. The Swiss Franc appreciated sharply in a risk-averse environment, USD/CHF settled at 0.9245.

AUD/USD holds on to most of its intraday gains, trading around 0.7280, while USD/CAD consolidates around 1.2580.

Global indexes closed in the red, as investors eyed news coming from China. Evergrande, the troubled property giant, requested a trading halt over the announcement of a major transaction. The news suggested the company will sell a majority stake in its property management business for more than US$5 billion, a sign that the company is still working on covering its US$305 billion debt.

Australia has a packed macroeconomic calendar, which includes the RBA monetary policy decision.

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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