Trade Data Puts the Greenback and the Loonie in Focus

Earlier in the Day:

It was a busier start to the Asian session on the economic calendar. The Aussie Dollar and the Japanese Yen were in action in the early hours of this morning.

For the Japanese Yen

Household spending rose by 0.1% in December, following a 1.2% slide in November. Economists had forecast a 0.7% increase. Year-on-year, spending fell by 0.2%, however, following a 1.3% decline in November. Economist had forecast a 0.3% increase.

According to the Statistic Bureau,

• Spending on furniture & household utensils slid by 11.7%, with fuel, light, & water charges down 6.4%.
• There were also declines in spending on culture & recreation (-2.7%), food (-1.8%), and medical care (-0.4%).
• Spending on education surged by 17.4%, however, with spending on transportation & communication up 13.4%.

The Japanese Yen moved from ¥115.063 to ¥115.073 upon release of the figures. At the time of writing, the Japanese Yen was down by 0.15% to ¥115.270 against the U.S Dollar

For the Aussie Dollar

Business Confidence improved in January, with the NAB Business Confidence Index climbing from -12 to +3.

According to the January Survey,

• While confidence improved, business conditions deteriorated as a result of the Omicron strain.
• Staff shortages and customer caution weighed, with profitability, trading conditions, and employment falling.
• Confidence was on the rise after having slumped in December, with firms expecting disruption to be short-lived.
• Forward orders held steady at 4, supporting the optimistic outlook.

The Aussie Dollar moved from $0.71272 to $0.71294 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.06% to $0.7130.

Elsewhere

At the time of writing, the Kiwi Dollar was up by 0.09% to $0.6643.

The Day Ahead

For the EUR

It’s a quiet day ahead on the economic calendar. There are no material stats due out of the Eurozone to provide the EUR with direction. The lack of major stats will leave French exports and Italian retail sales in focus.

At the time of writing, the EUR was flat at $1.1442.

For the Pound

It’s a particularly quiet day ahead on the economic calendar. There are no material stats due out of the UK for the markets to consider. The lack of stats will leave UK politics in focus.

Earlier in the day, BRC Retail Sales Monitor figures were in focus. In January, the BRC Retail Sales Monitor increased by 8.1% year-on-year. The Monitor had increased by 0.6% in December.

At the time of writing, the Pound was flat at $1.3536.

Across the Pond

It’s a quiet day on the economic calendar, economic data limited to December trade data. Barring particularly dire numbers, however, we don’t expect the stats to have a material impact on the Dollar.

At the time of writing, the U.S Dollar Spot Index was up by 0.04% to 95.435.

For the Loonie

It’s also a quiet day ahead. Trade data for December will be in focus later today. With little else for the markets to consider, expect today’s numbers to draw interest.

At the time of writing, the Loonie was down by 0.06% to C$1.2675 against the U.S Dollar.

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