USD Continues 'Rage', All Currencies Fall!

<p>&nbsp;The US dollar moved higher in the European session as markets turned to safe-haven trading amid uncertainty over China's economy.</p><p><br /></p><p>China continued to be in the spotlight on Tuesday, with the country's real estate giant Country Garden on the verge of default due to its debt crisis.</p><p><br /></p><p>The property developer faces a deadline to make interest payments on two US dollar bonds today that could push it into default if it fails.</p><p><br /></p><p>However, the company eventually managed to pay the interest on the two bonds totaling $22.5 million before the last minute.</p><p><br /></p><p>Even so, the market remains worried about the possibility of the next crisis that could lead to the downfall of the country's entire real estate industry.</p><p><br /></p><p>Meanwhile, data from China's Caixin survey service published in the Asian session showed that the sector grew more slowly than expected in August.</p><p><br /></p><p><br /></p><p>This has prompted a sharp fall in commodity-related currencies, particularly the Aussie, New Zealand and Canadian dollars.</p><p><br /></p><p>The Aussie dollar plunged to a three-week low after also being pressured by the Reserve Bank of Australia's (RBA) decision to keep its interest rate unchanged at 4.10%.</p><p><br /></p><p>The US dollar rose to a new high since May 31, seeing the dollar index strengthen at 104.56 against most major currencies.</p><p><br /></p><p>Meanwhile, the euro and the pound also experienced a fall with each falling to a 3-month low as they were affected by the higher surge in the US dollar.</p><p><br /></p><p>On the other hand, the yen also recorded a decline against the US dollar but increased against most major currencies, which indicates that it also gained support as a safe-haven.</p>