FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
98,742,691Confirmed
2,116,319Deaths
70,917,411Recovered
Fetching Location Data…
Advertisement
Advertisement
Bob Mason

Earlier in the Day:

It was another busy start to the day on the economic calendar. The Aussie Dollar and Japanese Yen were in action through the Asian session.

Outside of the numbers, the markets also continued to monitor the latest coronavirus numbers.

At the time of writing, the total number of U.S cases stood at 187.347. For Italy, Spain, Germany, and France, the combined number of cases stood at 325,651. The total global number of cases rose to 856,917.

For the Japanese Yen

1st quarter Tankan survey numbers were in focus.

According to the latest survey, All Big Industry CAPEX rose by 1.8% in the 1st quarter, following a 6.8% rise in the 4th quarter. Economists had forecast a 1.1% decline.

With the sector having been in the hands of the U.S – China trade war last year, it was the coronavirus that weighed on sentiment in Q1. The Big Manufacturing Outlook Index slid from 0.0 to -11.0 in the 1st quarter.

Things were not much better for large manufacturers and non-manufacturers. The Large Manufacturers Index fell from 5 to -8, with the Large Non-Manufacturers Index falling from 20 to 8. Economists had been more pessimistic, however…

The Japanese Yen moved from ¥107.524 to ¥107.352 upon release of the figures. At the time of writing, the Japanese Yen was down by 0.13% to ¥107.68 against the U.S Dollar.

For the Aussie Dollar

February manufacturing and building approval figures were in focus ahead of March’s Manufacturing PMI out of China.

In March, the AIG Manufacturing Index rose from 44.3 to 53.7. Following a fall from 45.4 to 44.3 in February, the rebound brought an end to 4-consecutive months of contraction.

According to the March report,

  • Stockpiling was attributed to the boost in local food and grocery manufacturing at the end of the quarter.
  • Personal care items also saw a surge in demand, supporting the March jump.

The Aussie Dollar moved from $0.61497 to $0.61488 upon release of the figures that preceded building approvals and China’s PMI.

Building approvals surged by 19.9% in February, reversing a 15.3% slump in January.

According to the ABS,

  • Private sector houses saw a 0.8% decline, while private sector dwellings excluding houses jumped by 61.7%.

The Aussie Dollar moved from $0.61349 to $0.61324 upon release of the figures that preceded China’s March Manufacturing PMI.

At the time of writing, the Aussie Dollar was down by 0.23% to $0.6117.

Out of China

The Caixin Manufacturing PMI rose from 40.3 to 50.1 in March. Economists had forecast an increase to 45.5.

According to the Caixin survey,

  • Production saw a marginal increase in March, while the pandemic continued to weigh on demand and supply chains.
  • Total new work fell for a 2nd consecutive month, with delivery times lengthening.
  • The global spread of the virus led to a marked decline in new export orders in the month.
  • Employment conditions continued to deteriorate, though the rate of decline eased from the previous month.
  • In spite of the continued spread of the virus, firms remained upbeat that production would increase over the next year.

The Aussie Dollar moved from $0.61197 to $0.61187 upon release of the figures.

Elsewhere

At the time of writing, the Kiwi Dollar was down by 0.20% to $0.5944.

Advertisement

The Day Ahead:

For the EUR

It’s a busy day ahead on the economic calendar. Key stats due out include March Manufacturing PMIs for Spain and Italy and finalized Manufacturing PMIs for France, Germany, and the Eurozone.

Italy and Spain’s Manufacturing PMIs will certainly garner plenty of attention though expect Italy’s to have the greatest impact. The region’s 2nd largest manufacturer has been in lockdown mode throughout March, so the numbers are likely to be dire…

Any downward revisions to prelim numbers from France, Germany, and the Eurozone will also test support levels. The ECB has talked of a recession and today’s numbers could reinforce that view…

We would expect the Eurozone’s unemployment rate and Germany’s retail sales figures for February to have a muted impact.

Outside of the stats, the latest updates on the coronavirus numbers will also provide direction. A smaller increase in the number of new cases would provide support to the EUR. The latest numbers reflected another sizeable increase on Tuesday, however.

At the time of writing, the EUR was down by 0.18% at $1.1011.

For the Pound

It’s a relatively quiet day ahead on the economic calendar. Finalized March Manufacturing PMI numbers are due out in the early part of the day.

Barring a material deviation from prelim, the PMI should have a relatively muted impact on the Pound.

The focus will remain on the coronavirus numbers, with the UK seeing a steady yet moderate rise. While on the rise, the total remains well below total cases from Italy, Spain, Germany, and France.

At the time of writing, the Pound was down by 0.35% to $1.2377.

Across the Pond

It’s a busy day ahead on the U.S economic calendar. The market’s preferred ISM Manufacturing PMI for March is due out along with ADP Nonfarm Employment Change numbers.

Expect the ISM numbers to have a greater impact on the day.

Finalized Markit Manufacturing PMI numbers should have a muted impact on the Dollar.

Outside of the numbers, chatter from the Oval Office will need monitoring. As numbers continue to surge, hopes of a return to BAU at the end of April may begin to fade.

Should risk aversion return, we could see the Dollar Spot Index return to 100 levels before any pullback. Yes, the U.S economy will suffer but others will see conditions deteriorate more dramatically…

The Dollar Spot Index was up by 0.07% to 99.120 at the time of writing.

For the Loonie

It’s a quiet day ahead on the economic calendar, with no material stats due out of Canada to provide direction.

Expect chatter on the U.S – Russia talks, Saudis production plans, and the weekly EIA inventory numbers to be in focus.

Even decent PMI numbers out of China had failed to stop the slide on Tuesday…

The Loonie was down by 0.30% at C$1.4104 against the U.S Dollar, at the time of writing.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US