FOREX-Aussie perks up as Evergrande relief lifts investor sentiment

       * Aussie jumps almost 0.5% after Evergrande unit
    * Investors left wondering on dollar bond coupon
    * BOJ seen on hold, Fed dot plots in focus

    By Hideyuki Sano
    TOKYO, Sept 22 (Reuters) - The Australian dollar jumped and
the safe-haven yen eased slightly on Wednesday after struggling
Chinese property giant Evergrande said it would make
an upcoming bond coupon, allaying immediate fears about a messy
corporate collapse.
    Some of the excitement fizzled, however, after traders
realised it was still not known whether the developer would be
able to pay the coupon on its offshore dollar bonds due on
    The Australian dollar rose as much as 0.49% to $0.7268
 before giving up part of the gains to trade at $0.7247,
up 0.2% on the day. The yen weakened about 0.2% to 109.485 to
the dollar, showing little reaction to the Bank of
Japan's decision to keep its policy on hold.
    Investors are still nervous about the fate of Evergrande,
which missed interest payments due Monday to at least two of its
largest bank creditors, Bloomberg reported.

    "The market reacted to the coupon payment news but it kind
of looks like it is just out of the frying pan into the fire,"
said Teppei Ino, senior strategist at MUFG Bank.
    The dollar index stood at 93.226 in early Asian
trade, staying not far off Monday's one-month high of 93.455.
    The euro hardly budged at $1.1725, having stabilised
at a one-month low of $1.1700 on Monday.
    Earlier, the common currency dropped to a seven-month low of
127.93 yen, as the safe-haven Japanese currency was supported by
the cautious mood.
    The Chinese yuan was fairly stable, firming slightly to
6.4748 per dollar in the offshore trade, edging back from
one-month low of 6.4878 set on Monday.
    The onshore yuan traded at similar levels, down slightly
from its Friday's close before a long weekend, at 6.4715

    Another major focus for the day is the U.S. Federal Reserve,
which is expected to drop more hints on its future policy path,
including when to start tapering its bond buying and when to
start raising interest rates.
    There are rising expectations the central bank will signal
plans to start reducing its massive bond purchases in November
if incoming data holds up.
    The so-called "dot plot", which charts policymakers economic
and rates projections, could offer clues on when the Fed will
hike interest rates from the current near zero level.
    "Perhaps tapering is already baked in. What will matter the
most for the currency market is how dot-plots or comments from
Powell will affect U.S. rate expectations," said JP Morgan's
    Elsewhere, the Canadian dollar stood little changed, having
pared gains made on Tuesday after Prime Minister Justin
Trudeau's Liberals won a tightly-contested election.

    Cryptocurrencies bounced back a tad after plunges in the
previous session.
    Bitcoin rose 3.8% to $42,134 after having hit a 1-1/2-month
low of $39,573. Ether gained 3.7% to $2,868, having fallen to as
low as $2,732, down more than 30% from a four-month
peak hit earlier this month.
    The United States on Tuesday unveiled sanctions against a
cryptocurrency exchange over its alleged role in enabling
illegal payments from ransomware attacks.

    Currency bid prices at 0256 GMT
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change
 Euro/Dollar                  $1.1725        $1.1726     +0.00%         -4.03%      +1.1730     +1.1717
 Dollar/Yen                   109.4200       109.1900    +0.16%         +5.89%      +109.4800   +109.1200
 Euro/Yen         Dollar/Swiss                 0.9240         0.9236      +0.04%         +4.43%      +0.9245     +0.9238
 Sterling/Dollar              1.3659         1.3661      -0.02%         -0.03%      +1.3678     +1.3653
 Dollar/Canadian              1.2794         1.2812      -0.13%         +0.48%      +1.2826     +1.2775
 Aussie/Dollar                0.7250         0.7233      +0.24%         -5.75%      +0.7268     +0.7225
 NZ                           0.7017         0.7005      +0.20%         -2.26%      +0.7031     +0.6994

All spots
Tokyo spots
Europe spots
Tokyo Forex market info from BOJ

 (Reporting by Hideyuki Sano; Editing by Sam Holmes)

Copyright © Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.