Economic Data Puts the EUR and the Loonie in Focus after a Busy Asian Session
Earlier in the Day:
It was a busy start to the day on the economic calendar this morning. The Japanese Yen, the Aussie Dollar, the Kiwi Dollar were all in action this morning, with economic data from China also in focus.
For the Japanese Yen
Industrial production and retail sales figures were out this morning.
In April, industrial production rose by 2.5%, following a 1.7% increase in March. Economists had forecast a 4.1% jump in production.
According to the Ministry of Economy, Trade and Industry,
Industries that mainly contributed to the increase:
- General-purpose and business orientated machinery.
- Electrical machinery, and information, and communication electronics equipment.
- Production machinery.
Industries that mainly contributed to the decrease:
- Motor vehicles.
- Transport equipment (excl. motor vehicles).
- Plastic products.
According to the Ministry of Economy, Trade and Industry, retail sales surged by 12.0%, following a 5.2% increase in March. Economists had forecast a 15.3% surge.
The Japanese Yen moved from ¥109.919 to ¥109.932 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.13% to ¥109.71 against the U.S Dollar.
For the Kiwi Dollar
In May, the ANZ Business Confidence Index rose from -2 to 2.0.
According to the latest ANZ Report,
- Compared with May’s prelim reading, the index was 5 points lower at +2.
- Firm’s own activity was also 5 points lower from the prelim at +27%. In spite of this, both were still higher than in April.
- Investment intentions rose 2 points to +18.9% (prelim: +20.8%).
- Employment intentions rose by 4 points to +20.5% (prelim: +22.1%).
- Cost expectations rose 5 points to a net 81.3% of respondents reporting higher costs, up from a prelim 80.3%.
- A net 57.4% of respondents intend to raise their prices, down from a prelim 57.6%.
- Profit expectations rose 4 points to +3.9% (Prelim: +9.6%).
The Kiwi Dollar moved from $0.72398 to $0.72450 upon release of the figures. At the time of writing, the Kiwi Dollar down by 0.06% to $0.7246.
Out of China
In May, the NBS Manufacturing PMI slipped from 51.1 to 51.0. Economists had forecast a hold at 51.1. The non-manufacturing PMI increased from 54.9 to 55.2.
As a result, the NBS Composite PMI rose from 53.8 to 54.2.
The Aussie Dollar moved from $0.77119 to $0.77193 upon release of the figures that preceded private sector credit figures from the RBA.
For the Aussie Dollar
Private sector credit rose by 0.2% in the month of April. In March, private sector credit had risen by 0.4%.
According to the RBA,
- Housing credit increased by 0.5%, following a 0.5% rise in March, while personal credit stalled. In March, personal credit had risen by 0.1%.
- Business credit fell by 0.3%, however, following a 0.4% rise in March.
The Aussie Dollar moved from $0.77207 to $0.77186 upon release of the figures. At the time of writing, the was Aussie Dollar was up by 0.08% to $0.7718.
The Day Ahead
For the EUR
It’s a relatively busy day ahead on the economic data front, with the inflation in focus.
Prelim inflation figures for May are due out of Germany, Italy, and Spain.
Expect Italy and Germany’s inflation figures to draw the greatest interest. With the markets expecting a continued pickup in inflationary pressure, a larger than expected uptick would give the EUR a boost.
At the time of writing, the EUR was up by 0.03% to $1.2196.
For the Pound
It’s a quiet day ahead on the economic calendar. There are no material stats due out, with the UK markets closed at the start of the week.
At the time of writing, the Pound was up by 0.03% to $1.4192.
Across the Pond
It’s a quiet day ahead on the calendar, with the U.S markets also closed.
At the time of writing, the Dollar Spot Index was down by 0.01% to 90.025.
For the Loonie
It’s a relatively quiet day ahead on the economic data front. 1st quarter current account and April RMPI numbers are due out.
Expect April’s RMPI numbers to have a greater influence on the day.
From earlier in the day, manufacturing sector PMI numbers from China will also provide direction.
At the time of writing, the Loonie was down by 0.01% to C$1.2077 against the U.S Dollar.
For a look at all of today’s economic events, check out our economic calendar.