It's a busy day, with the EUR and USD in the spotlight. It's also a busy day on the earnings front, which will need to be positive to support risk appetite.
It was a relatively busy day on the economic calendar through the Asian session. April private-sector PMI numbers out of China, NZ business confidence figures and Australia’s private sector credit figures were released.
The NBS manufacturing PMI slipped from 50.50 to 50.1 in April, falling short of a forecasted 50.70. The non-manufacturing PMI also eased from 54.8 to 54.3, coming in below a forecasted 55.0.
The Aussie Dollar moved from $0.70671 to $0.70398 upon release of the figures, which preceded private sector credit numbers.
The ANZ Business Confidence Index rose from -38 to -37.5 in April. According to the latest ANZ Business survey,
The Kiwi Dollar moved from $0.66815 to $0.6660 upon release of the figures. At the time of writing, Kiwi Dollar was down 0.02% to $0.6665.
Private sector credit rose by 0.3% in March, which was in line with forecasts and a 0.3% rise in February.
According to figures released by RBA,
The Aussie Dollar moved from $0.70416 to $0.70441 upon release of the figures. At the time of writing, the Aussie Dollar was down 0.10% to $0.7049.
With the Japanese markets closed for the week, risk sentiment continued to provide direction for the Yen. At the time of writing, the Japanese Yen was up by 0.04% to ¥111.61 against the U.S Dollar, with support coming from the weaker stats out of China.
Key stats include 1st quarter GDP numbers for France and the Eurozone and German unemployment and consumer sentiment figures due out later this morning. French consumer spending numbers will also need to be watched. The EUR has been particularly sensitive to consumer confidence figures of late.
Finalized inflation numbers out of Italy and Germany will likely have a muted impact on the EUR.
Ahead of the numbers, manufacturing PMI figures out of China set the tone in the early part of the day.
At the time of writing, the EUR was up 0.03% at $1.1189.
It’s another quiet day on the economic calendar, with no material stats scheduled for release.
The focus will continue to be on Brexit. Positive updates from both sides of cross-party talks would have led to expectations of a near-term solution to the Brexit puzzle.
At the time of writing, the Pound was up 0.02% to $1.2940.
Chicago PMI, consumer confidence and pending home sales and house price figures are due out of the U.S this afternoon.
On the data front, the focus will be on April’s consumer confidence figures. While retail sales figures have improved, consumption slumped in the 1st quarter. Any weakness will likely weigh heavily, though much will depend on updates from trade talks that resumed this morning.
Outside of the stats, U.S corporate earnings will also be in focus. Key earnings results include those for Apple Inc., General Electric Co., General Motors Co., McDonalds Corp., and Pfizer Inc.
At the time of writing, the Dollar Spot Index was down by 0.04% to 97.818.
The Loonie will be in action later this afternoon with GDP and RMPI figures to provide direction. The numbers will need to impress, however, to give the Loonie any chance of a rebound from last week’s reversal.
Private sector PMI numbers out of China weighed on appetite for riskier assets in the earlier part of the day.
The Loonie was down by 0.04% at C$1.3463, against the U.S Dollar, at the time of writing, with a fall in crude oil prices also contributing to the downside.
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.