Risk Sentiment Deteriorates on Evergrande Fears

Global Equities Tumble on Evergrande’s Growing Default Risks

The US dollar traded lower against most of the other major currencies on Monday and during the Asian session Tuesday. It gained only versus GBP, while it was found virtually unchanged against NZD. The main gainers were AUD, CHF and JPY.

Nasdaq 100 — Technical Outlook

The Nasdaq 100 cash index fell sharply yesterday, but hit support at 14815 and then, it rebounded. Overall, the index remains below the prior upside support line drawn from the low of May 19th, and thus, even if the latest rebound extends for a while more, we would consider the near-term picture to be negative.

NZD/USD — Technical Outlook

NZD/USD has been trading in a consolidative manner since Friday, between the round number of 0.7000 and the 0.7042 barrier. Overall though, the price structure remains of lower highs and lower lows, with the dip below 0.7080 on September 16th signaling a short-term bearish reversal. Therefore, we would see a negative short-term picture.

As for Today’s Events

During the Asian session, the RBA released the minutes from its latest policy gathering, but as we have been anticipating, they passed largely unnoticed. There was no new information in the minutes. It was just confirmed that the central scenario remains that rate increases will not happen until 2024.

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