With economic data on the lighter side, geopolitics and the passage of the COVID-19 stimulus package in the U.S remain in focus.
It’s was a relatively busy start to the day on the economic calendar this morning. The Kiwi Dollar and economic data from China were in focus in the early part of the day.
Away from the economic calendar, updates on the U.S stimulus package continued to be an area of focus as the markets also responded to Friday’s U.S non-farm payroll numbers.
On the geopolitical risk front, rising tension between the U.S and China was also of influence.
The ANZ Business Confidence Index fell from -34.4 to -42.4 in July.
According to the latest ANZ Report,
The Kiwi Dollar moved from $0 66029 to $0.66012 upon release of the figures. At the time of writing, the Kiwi Dollar was up by 0.02% to $0.6606.
China’s annual rate of inflation picked up from 2.5% to 2.7% in July, coming in ahead of a 2.6% forecast. Month-on-month, consumer prices rose by 0.6%, following a 0.1% decline in June. Economists had forecast a 0.4% rise.
Year-on-year, the producer price index fell by 2.4%, following a 3% decline in June. Economists had forecast a 2.5% slide.
The Aussie Dollar moved from $0.71620 to $0.71673 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.15% to $0.7168.
At the time of writing, the Japanese Yen was up by 0.13% to ¥105.78 against the U.S Dollar.
It’s a quiet day ahead on the economic calendar. There are no material stats to provide the EUR with direction.
A lack of stats will leave the EUR in the hands of market risk sentiment on the day. The U.S stimulus package and tensions between the U.S and China will remain key drivers.
At the time of writing, the EUR was up by 0.07% to $1.1795.
It’s also a quiet day ahead on the economic calendar, with no material stats due out to provide direction.
Updates on Brexit and market risk sentiment will be the key drivers for the Pound.
At the time of writing, the Pound was up by 0.16% to $1.3073.
It’s a relatively quiet day ahead for the U.S Dollar. Key stats include June’s JOLT’s job openings.
While we will expect some influence from the numbers, chatter from the Oval Office will need monitoring.
At the time of writing, the Dollar Spot Index was up by 0.06% to 92.848.
After a quiet day ahead, with no material stats to provide the Loonie with direction.
Any retaliatory moves by Canada and China against Trump’s latest actions would be a test for crude oil and the Loonie.
Positive economic data from last week, however, from the U.S and the EU should limit any major downside.
At the time of writing, the Loonie was up by 0.07% to C$1.3374 against the U.S Dollar.
For a look at all of today’s economic events, check out our economic calendar.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.