Dollar pairs mostly keep within 10 pips of each other for now
There was a notable reaction in risk trades earlier to the Evergrande news here earlier but some of that enthusiasm has faded in past few hours. AUD/USD for example moved up from 0.7470 to a high of 0.7489 and is now trading back to 0.7475.
So far, the changes are relatively light on the day with dollar pairs keeping tighter. EUR/USD is trading within a 9 pips range but holding below its 100-hour moving average @ 1.1632. As such, there is room to roam with its 200-hour moving average seen @ 1.1604.
Commodity currencies are still holding on to mild gains but it is still rather early to draw much conclusions from risk sentiment for now.
There might be a second-round push on the Evergrande news in Europe but keep in mind there are other moving parts at play too. Treasury yields are off the highs yesterday but are still keeping elevated with 10-year yields resting at 1.684%.
That is putting pressure on tech stocks with Nasdaq futures down 0.5%, S&P 500 futures down 0.1%, while Dow futures are up 0.1% as such. So, there is that to consider.
Besides that, yen pairs will continue to be a key focus with USD/JPY looking to hold above 114.00 ahead of the week's closing and other yen pairs generally looking to bounce back after the drop observed yesterday.
