Economic Data Puts the EUR back into Focus, with the RBA and the Aussie also in the Spotlight

Earlier in the Day:

It was a busy start to the day on the economic calendar this morning. The Pound and the Japanese Yen were in action in the early hours, with economic data from China in focus. Later this morning, the RBA will deliver its September policy decision amidst rising COVID-19 cases in the country

For the Japanese Yen

Household spending fell by 0.70% in July, month-on-month, following a 3.2% slide in June. Economists had forecast a 1.1% increase. Year-on-year, household spending was up 0.70% versus a forecasted 0.10% increase. In June, household spending had been down by 5.10%, year-on-year.

According to the Statistic Bureau,

• Spending on transportation & communication surged by 14.2%.
• There were also increases in spending on food (+1.9%), clothing & footwear (+2.7%), and culture & recreation (+1.7%).
• Spending on education and on furniture & household utensils slid by 9.9% and by 8.4% respectively, however.
• There were also declines in spending on medical care (-7.0%), fuel, light, & water charges (-5.9%), and housing (-1.7%).

The Japanese Yen moved from ¥109.835 to ¥109.827 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.08% to ¥109.770 against the U.S Dollar.

From China

Trade data was in focus this morning.

In August, China’s USD trade surplus widened from US$56.59bn to US$58.35bn. Economists had forecast a narrowing to US$51.05bn.

• Imports increased by 33.1%, year-on-year, versus a forecasted 26.8%. In July, imports had been up by 28.1% year-on-year.
• Exports were up by 25.6%, year-on-year, versus a forecasted 17.1%. In June, exports had been up 19.3% year-on-year.

The Aussie Dollar moved from $0.74484 to $0.74441 upon release of the figures. At the time of writing, the Aussie Dollar was flat at $0.7439.

Elsewhere

The Kiwi Dollar was up by 0.01% to $0.7137.

The Day Ahead

For the EUR

It’s a busy day ahead on the economic data front.  German industrial production figures are due out along with 2^nd quarter GDP numbers for the Eurozone.

ZEW Economic Sentiment figures for Germany and the Eurozone will also influence.

At the time of writing, the EUR was up by 0.08% to $1.1880.

For the Pound

It’s a quiet day ahead on the economic calendar. Housing sector numbers for August are due out that will likely have a muted impact on the Pound.

Earlier in the day, BRC Retail Sales Monitor increased by 1.5%, year-on-year, in August. In July, the Monitor had been up by 4.7%.

At the time of writing, the Pound was up by 0.09% to $1.3850.

Across the Pond

There are no stats due out of the U.S to provide the markets with direction following the Labor Day holiday.

At the time of writing, the U.S Dollar Spot Index was up by 0.09% to 92.118.

For the Loonie

There are also no stats due out of Canada following the Labor Day holiday. The lack of stats will leave the Loonie in the hands of market risk sentiment and crude oil prices, with China’s trade data likely to set the tone.

At the time of writing, the Loonie was up by 0.06% to C$1.2526 against the U.S Dollar.

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