The Australian Dollar exchange has been stronger before to the USD. That was happened in the Asian trading session, but it declined again after entering the European session. 

The Aussie and otger high – risk assets positions are still fragile due to the several factors. It is especially about the worrying problem due to the debt owned by a giant property company, Evergrande. 

Meanwhile, the safe haven assets such as US dollars and gold are quite stable in some seconds before the FOMC meeting announced. That is the progress so far. 

In an information disclosure presented to the Shenzhen Stock Exchange on Wednesday, Evergrande said it had reached an agreement on the interest payments.

The Good News for the Market

The amount of that interest payment is about 232 million yuan ($35.9 million) domestic bond due on Thursday. That news becomes a good sign for the financial market. 

That is why; the Australian dollar is pushed to its highest level in 0.7268. However, the market antusiasm was straightly declining after realizing one more thing about Evergrande. 

That company is still having the interest bill of foreign bonds worth for $83.5 million for the same Thursday — and whether it will be repaid or not — will be repaid as soon as possible. 

Under the agreement with investors, the company has a grace period of 30 days before a missed payment on an overseas bond will become a default. That is the rule. 

Will Evergrande Reached the Default Position?

Earlier this week, Evergrande reportedly defaulted on debt interest on at least two of its biggest creditors. The company has even started paying investors in its wealth management business with property.

That is because it does not have the adequate funds to fulfill its obligations. This further action raises concerns about a potential domino effect if Evergrande actually reaches the default stage.

Some analysts warn that the domino effect of Evergrande's downfall will not only have an impact on china's economy. However, it could also spill over into the global financial system. 

The Analysts are also increasingly their pessimistic about potential aid from Beijing. Rather than delivering bailouts, Beijing is more likely to help with debt restructuring..

The Debt Progress is Always Highlighted 

Beijing may also help with the order bankruptcy proceedings for Evergrande. The analysts don’t predict that the China government will provide a direct help for that giant company. 

This opinion was stated by an analyst from the S&P global Ratings in a note add by the CNN. It is because the government bailout will hurt the Beijing campaign in a sector. 

It is especially about their campaign to Increase a better discipline in the property sector. The market participants are now looking at the Evergrande debt crisis progress. 

Furthermore, they are also waiting for the announcement result of the FOMC meeting. It is hoped that the Fed will give more clues about the further monetary policy in the future. 

Tapering is Still Becoming a Hot Issue

The monetary policy in the future is included when the tapering will be started and about the right time to increase the interest rate. The economy experts then give their predictions. 

Based on a survey done by Reuters, most of them predicted that the tapering will be started on November. It is especially if the economy data has been meeting the requirements. 

Besides that, the market focus will be in the dot plot graphic and the comment made by Jerome Powell as the Fed’s leader. Dot plot expressed the predictions of the FOMC meeting members. 

It is especially about the interest rate that will be made by that organization in the future. It may have a huge impact on the US dollar performance in the forex market.