Jobless Claims and Retail Sales Put the Greenback and the U.S Economy in the Spotlight

Earlier in the Day:

It was another busy start to the day on the economic calendar this morning. The Aussie Dollar, Kiwi Dollar, and the Japanese Yen were in action this morning.

For the Kiwi Dollar

GDP numbers were in focus in the early hours.

In the 2^nd quarter, the New Zealand economy expanded by 2.8% versus a forecasted 1.3%. The economy had expanded by 1.4% in the previous quarter.

According to NZ Stats,

• Services industries led the way, with retail trade and accommodation the largest contributor to growth.
• Air transport and transport support services also delivered support.
• Household consumption expenditure fell by 1.4%, however, due to a 1.9% decline in household spending on services.

The Kiwi Dollar moved from $0.71253 to $0.71334 upon release of the figures. At the time of writing, the Kiwi Dollar was up by 0.23% to $0.7122.

For the Aussie Dollar

Employment figures were key this morning.

In August, full employment fell by 68k following a 4.2k decline in July. Employment tumbled by 146.3k, however, versus a forecasted 90.0k decline. In July, employment had risen by 2.2k.

According to the ABS,

• The unemployment rate fell from 4.6% to 4.5%, with the participation rate declining from 66.0% to 65.2%.
• Year-on-year, the number of unemployed was down by 298,000.

The Aussie Dollar moved from $0.73431 to $0.73365 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.10% to $0.73367.

For the Japanese Yen

In August, Japan’s trade balance fell from a ¥439.4bn surplus to a ¥635.4bn deficit. Economists had forecast a deficit of ¥47.7bn

According to figures released by the  Ministry of Finance,

• Exports increased by 26.2%, year-on-year, while imports were up 44.7%.
• To China, exports rose by 12.6%, with exports to the U.S up 22.8%.
• Exports to Western Europe increased by 14.1%.
• Imports from China rose by 23.2%, with imports from the U.S up 33.5%.
• From Western Europe, imports rose by 48.4%.

The Japanese Yen moved from ¥109.359 to ¥109.424 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.04% to ¥109.340 against the U.S Dollar.

The Day Ahead

For the EUR

It’s a quieter day ahead on the economic calendar. Trade data for the Eurozone will be in focus later today. Barring dire numbers, however, the numbers are unlikely to have a material impact on the EUR.

On the monetary policy front, ECB President Lagarde is due to speak later today. Any chatter on policy or the economic outlook would move the dial.

At the time of writing, the EUR was flat at $1.1817.

For the Pound

It’s a particularly quiet day ahead on the economic calendar. There are no material stats due out of the UK ahead of tomorrow’s retail sales figures.

With the lack of stats, we can expect further market reaction to the employment and inflation figures from earlier in the week.

At the time of writing, the Pound was up by 0.02% to $1.3843.

Across the Pond

It’s a busy day ahead. Retail sales, jobless claims, and the Philly FED Manufacturing PMI for September are due out.

Expect the jobless claims and retail sales figures to have a greater impact on the Dollar and market risk sentiment

At the time of writing, the U.S Dollar Spot Index was flat at 92.475.

For the Loonie

It’s a quiet day ahead for the Loonie.

Wholesale sales figures for July are due out later today. Barring particularly dire numbers, however, the numbers should have a muted impact on the majors.

Market risk sentiment will be the key driver on the day.

At the time of writing, the Loonie was down by 0.02% to C$1.2632 against the U.S Dollar.

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