It's a quiet day ahead on a busy weekly economic calendar. Geopolitics and COVID-19 will be key drivers on the day.
It’s was a busy start to the day on the economic calendar this morning. The Japanese Yen, the Aussie Dollar, and the Kiwi Dollar were in action. There was also economic data from China to consider.
Industrial production and retail sales were in focus.
According to prelim figures, industrial production jumped by 8% in July, following on from a 1.9% increase in June. Economists had forecast a 5.8% rise.
According to the Ministry of Economy, Trade and Industry, retail sales fell by 2.8%, partially reversing a 3.9% rise from June. Economists had forecast a 1.7% decline.
The Japanese Yen moved from ¥105.512 to ¥105.334 upon release of the figures. At the time of writing, the Japanese Yen was down by 0.17% ¥105.55 against the U.S Dollar
NBS private sector PMIs for August were in focus in the early part of the day.
The manufacturing PMI slipped from 51.1 to 51.0, while the non-manufacturing PMI rose from 54.2 to 55.2.
The Aussie Dollar moved from $0.73559 to $0.73520 upon release of the figures.
The ANZ Business Confidence Index fell from -31.8% to -42.4% in August. In July, the index had risen from -34.4% to -31.8%.
According to the latest ANZ Report,
The Kiwi Dollar moved from $0.67371 to $0.67333 upon release of the figures. At the time of writing, the Kiwi Dollar was down by 0.07% to $0.6738.
Company gross operating profits and private sector credit figures were in focus.
In the 2nd quarter, company gross operating profits jumped by 15%. In the 1st quarter, profits had risen by 1.1%. Economists had forecast a 7.5% slide.
In July, private sector credit fell by 0.1% in July, following a 0.2% decline in June.
According to the RBA,
The Aussie Dollar moved from $0.73538 to $0.73592 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.04% to $0.7368.
It’s a relatively busy day ahead on the economic calendar. Key stats include August’s prelim inflation figures for Germany, Italy, and Spain.
Barring particularly dire numbers, we are not expecting too much influence on the EUR.
The lack of influence will likely leave the EUR in the hands of geopolitics and COVID-19 news on the day.
At the time of writing, the EUR was up by 0.02% to $1.1905.
It’s a particularly quiet day ahead on the economic calendar, with the UK markets closed. There are no material stats to provide the Pound with direction.
A lack of stats will leave the Pound in the hands of market risk sentiment and Brexit chatter on the day.
At the time of writing, the Pound was down by 0.07% to $1.3344.
It’s a quiet day ahead in a busy week for the U.S Dollar. There are no material stats due out of the U.S to provide the Dollar with direction.
A lack of stats will leave the Dollar in the hands of market risk sentiment and chatter from Washington.
U.S Presidential Election chatter will also likely begin to pick up in the week ahead. We can expect the markets to be responsive to the polls.
The Dollar Spot Index was down by 0.03% to 92.346 at the time of writing.
It’s a relatively busy day ahead on the economic data front. Key stats include July building permits and RMPI numbers.
Away from the economic calendar, market sentiment towards the global economic outlook and demand for crude will also influence.
At the time of writing, the Loonie was up by 0.08% to C$1.3088 against the U.S Dollar.
For a look at all of today’s economic events, check out our economic calendar.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.