Economic Data from Germany and the U.S Put the EUR and the Dollar back in Focus

Earlier in the Day:

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

For the Aussie Dollar

The AIG Manufacturing Index rose from 51.2 to 50.4 in October.

According to the October survey,

• The sector decelerated for a 4^th consecutive month, with the PMI falling to its lowest level since Sept-2020.
• Four of the activity indexes contracted in October, with declines in production, employment, exports, and supplier deliveries.
• Forward orders continued to expand at a strong pace, however, suggesting a likely recovery once COVID-19 restrictions are eased further.

The Aussie Dollar moved from $0.75148 to $0.75155 upon release of the figures. At the time of writing, the Aussie Dollar down by 0.03% to $0.7516.

From China

The Caixin Manufacturing PMI rose from 50.0 to 50.6 in October.

According to the October survey,

• While only modest, the rate of expansion was the most marked in 4-months.
• Total new orders rose by the greatest extent in 4-months.
• Domestic demand drove new orders, however, with export orders falling for a 3^rd consecutive month.
• Production fell for a 3^rd month in a row, leading to a further decline in employment.
• Supply chain delays became more widespread, with prices for materials, energy, and transport on the rise once more.
• The rate of input price inflation was the steepest seen since Dec-2016.
• As a result, output charges also rose at a marked rate.
• Manufacturers were generally optimistic, however, that output would rise over the next 12-months.

The Aussie Dollar moved from $0.75117 to $0.75150 upon release of the figures.

Elsewhere

At the time of writing, the Japanese Yen was down by 0.19% to ¥114.170 against the U.S Dollar, with the Kiwi Dollar up by 0.04% to $0.7174.

The Day Ahead

For the EUR

It’s a relatively quiet day ahead on the economic calendar. German retail sales figures for September will be in focus later this morning.

With consumer prices on an upward trend, today’s figures will influence as the markets look to see the impact of inflation on consumption.

At the time of writing, the EUR was down by 0.02% to $1.1556.

For the Pound

It’s a relatively quiet day ahead on the economic calendar. October’s finalized manufacturing PMI will be in focus later today.

While any revisions to draw interest, market sentiment towards the BoE monetary policy decision will remain key.

At the time of writing, the Pound was down by 0.01% to $1.3681.

Across the Pond

ISM Manufacturing PMI numbers for October are due out of the U.S later in the day. While the headline figure will influence, sub-components will also draw interest, with cost pressures and new orders key.

Finalized Markit survey manufacturing PMIs are also due out but should have a muted impact on the Dollar.

At the time of writing, the U.S Dollar Spot Index was up by 0.04% to 94.161.

For the Loonie

It’s a particularly quiet day ahead, with no major stats due out of Canada.

The lack of stats will leave the Loonie in the hands of market risk sentiment and crude oil prices.

Private sector PMIs from China will set the tone ahead of PMI numbers from the U.S.

At the time of writing, the Loonie was up by 0.05% to C$1.2382 against the U.S Dollar.

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