Markets were nervous, across Asia, as Chinese Real Estate giant Evergrande was put into liquidation. This sent jitters across markets, although it was no surprise, as it has long suffered a liquidity crises. European markets were quiet, with no major economic data releases, although there will be waves of growth and inflation data coming in the next couple of days. US markets were also steady, contemplating the FOMC meeting, which begins tonight. Markets are expected the Fed to leave rates unchanged and will therefore be concentrating on the accompanying narrative. The US Dollar showed some strength ahead of the Central Bank meeting, with the EUR falling back to 1.0800, while the GBP slipped to 1.2680.
The inauspicious start to the week allowed the NZD to regain 0.6100, while the AUD holds below 0.6600. Markets await key economic growth and inflation data releases in Europe and the Fed’s rate decision.