Economic Data and Geopolitics Keep the Dollar in the Spotlight

Earlier in the Day:

It was a busy start to the day on the economic calendar this morning. The Kiwi Dollar was in action this morning, with economic data from China also in focus.

For the Kiwi Dollar

Business PMI numbers were in focus in the early hours.

In March, the Business PMI increased from 53.4 to an all-time high 63.6.

According to the March survey,

• A sharp increase in the production sub-index from 58.4 to 66.8 and the new orders sub-index from 58.0 to 72.5 drove the PMI to its all-time high.
• The employment sub-index saw a more modest rise from 50.2 to 53.5

The Kiwi Dollar moved from $0.71740 to $0.71767 upon release of the figures. At the time of writing, the Kiwi Dollar was down by 0.25% to $0.7152.

From China

GDP and March industrial production figures were in focus this morning.

In the 1^st quarter, the China economy expanded by 0.6%, quarter-on-quarter, following 2.6% growth in the 4^th quarter. Economists had forecasted growth of 1.5%.

Year-on-year, the economy expanded by 18.3%, versus a forecasted growth of 19.0%. In the 4^th quarter, the economy had expanded by 6.5% year-on-year.

Industrial production was up by 14.1% in March, year-on-year, falling short of a forecasted 17.2% rise. In February, industrial production had risen by 35.1%.

Other stats from China included fixed asset investment, unemployment, and retail sales figures.

Fixed asset investment rose by 25.6% year-on-year, coming in ahead of a forecasted 25.0% rise. In February, fixed asset investment had increased by 35.0%.

Retail sales increased by 34.2%, which was better than a forecasted 28%. In February, retail sales had risen by 33.8% year-on-year.

Finally, the unemployment rate fell from 5.5% to 5.3% in March. Economists had forecast for unemployment to hold steady at the end of the quarter.

The Aussie Dollar moved from $0.77345 to $0.77241 upon release of the figures. At the time of writing, the Aussie Dollar was down by 0.35% to $0.7725.

Elsewhere

At the time of writing, the Japanese Yen was down by 0.08% to ¥108.85 against the U.S Dollar.

The Day Ahead:

For the EUR

It’s a relatively quiet day ahead on the economic calendar. Finalized April inflation figures for Eurozone are due out later today.

Following finalized numbers from member states in the week, we don’t expect too much influence from the numbers, however.

At the time of writing, the EUR was down by 0.12% to $1.1953.

For the Pound

It’s another particularly quiet day ahead on the economic calendar.

There are no material stats due out of the UK to provide the Pound with direction.

The lack of stats leaves the Pound in the hands of COVID-19 and vaccine news.

At the time of writing, the Pound was down by 0.22% to $1.3756.

Across the Pond

It’s another busy day ahead on the economic calendar. Building permit and housing start figures are due out along with prelim consumer sentiment figures for April.

Expect the consumer sentiment figures to have a greater impact on the day.

Away from the economic calendar, chatter from Capitol Hill will also need monitoring.

At the time of writing, the Dollar Spot Index was up by 0.09% to 91.757.

For the Loonie

It’s another quiet day ahead on the economic calendar. Wholesale sales figures for February are due out later today.

Barring particularly dire numbers, however, we don’t expect too much influence from the stats.

Expect market risk sentiment and COVID-19 vaccine news to remain key areas of focus.

At the time of writing, the Loonie was down by 0.12% to C$1.2558 against the U.S Dollar.

For a look at all of today’s economic events, check out our economic calendar.