Economic Data and Geopolitics Keep the Greenback in Focus

U.S data later today and any further updates from Beijing and Washington on trade will influence risk sentiment later in the day.
Bob Mason
Working on digital tablet with stock market graph

Earlier in the Day:

It’s a relatively busy day on the economic calendar through the Asian session this morning.

The Kiwi Dollar and Aussie Dollar were in action in the early part of the day, with trade data and construction figures providing direction.

On the geopolitical front, while optimism over trade remained, a lack of commitment to a signing of an agreement limited any moves in the riskier assets.

For the Kiwi Dollar

The trade deficit narrowed from NZ$5,330m to NZ$5,040m, year-on-year, in October. Month-on-month, the deficit narrowed from NZ$1,319m to NZ$1,013m.

According to NZ Stats,

  • The value of total goods exports rose by NZ$206m (4.3%) to NZ$5,000m, year-on-year.
    • A 32% (NZ$194m) jump in the export of milk powder contributed to the upside.
    • The exports of lamb and beef also contributed.
    • A fall in the exports of untreated logs and green kiwi partially offset the gains.
    • By geography, exports to China rose by NZ$279m
  • The value of goods imports fell by NZ$86m to NZ$6,000m in October, year-on-year.
    • An NZ$120m fall in the imports of industrial transport equipment and NZ$84m fall in the imports of processed industrial supplies weighed on the headline figure.
    • Crude oil imports (-NZ$34m) also declined.

The Kiwi Dollar moved from $0.64287 to $0.64271 upon release of the figures. At the time of writing, the Kiwi Dollar was up by 0.02% to $0.6429.

For the Aussie Dollar

Construction work done fell by 0.4%, quarter-on-quarter, in the 3rd quarter, following on from a 3.8% slide in the 2nd quarter. Economists had forecast a 1% decline.

According to the ABS,

  • A 3.1% slide in residential construction contributed to the downside in the 3rd
  • Building construction (-0.5%) and engineering (-0.2%) also fell, while non-residential construction rose by 4%.

The Aussie Dollar moved from $0.67872 to $0.67874 upon release of the figures. At the time of writing, the Aussie Dollar up by 0.01% to $0.6789.

Elsewhere

At the time of writing, the Japanese Yen was down by 0.05% to ¥109.11 against the U.S Dollar.

The Day Ahead:

For the EUR

It’s a relatively quiet day ahead on the economic calendar. Key stats are limited to French jobseeker numbers that are unlikely to have a material impact on the EUR.

Outside of the numbers, market risk sentiment will continue to provide direction. The big question is whether the U.S and China are any nearer to a finalized phase 1 agreement as talks drag on.

At the time of writing, the EUR was down by 0.05% to $1.1016.

For the Pound

It’s yet another quiet day on the data front. There are no material stats due out of the UK to provide direction to the Pound.

A lack of stats continues to leave the Pound in the hand of UK Politics, with opinion polls and predictions to provide direction throughout the day.

At the time of writing, the Pound was down by 0.09% to $1.2855.

Across the Pond

It’s another busy day on the economic calendar. Key stats due out of the U.S include October durable goods orders and core durable goods orders. The FED’s preferred Core PCE Price Index figures are also due out along with 3rd estimate GDP numbers and personal spending figures.

Barring dire numbers, the weekly jobless claims figures, pending home sales, and Chicago PMI will likely have a muted impact on the Greenback.

Outside of the numbers, any further updates from Beijing and Washington on trade will also be key.

At the time of writing, the Dollar Spot Index was up 0.07% at 98.316.

For the Loonie

It’s a quiet day on the economic calendar, with no material stats scheduled for release through the day.

The lack of stats leaves the Loonie in the hands of the weekly crude oil inventory numbers and any trade talk.

The Loonie was down by 0.03% to C$1.3276, against the U.S Dollar, at the time of writing.

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