Evergrande updates helping risk sentiment, RBA Debelle addresses risks
|Risk sentiment has improved with China's Evergrande main unit Hengda Real Estate group announcing that it will make a coupon payment for onshore bond due September 23, according to Reuters.
In the same theme, we have the Reserve Bank of Australia's deputy speaking who has stated that the central bank is addressing the issue.
Guy Debblle said that he expects Chinese authorities could allow Evergrande to default.
Additionally, ADB has trimmed developing Asia's 2021 growth forecast to 7.1% (prev 7.2%) and keeps 2022 growth forecast at 5.4%. It says that the Evergrande debt problem ‘warrants careful monitoring’.
Earlier in the day, ''the International Monetary Fund on Tuesday said it is closely following developments surrounding China Evergrande Group (3333.HK), but believes Beijing has the tools to prevent the situation from turning into a systemic crisis,'' Reuters reported.
Meanwhile, AUD/USD bulls are stepping and the price would be expected to continue higher in a bullish correction as illustrated in the following prior analysis, AUD/USD bulls eye a bull correction as Evergrande risks start to abate:
''The daily wick as illustrated in the prior daily chart was filled into the target and now the bulls could well see value here. A run back to a 50% mean reversion that meets old structure could be targetted near 0.7280. However, failures below 0.7220 open risk of a retest of the mid-Aug lows and 071 the figure.''
AUD/USD live market
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.