U.S Economic Data and FED Chair Powell Put the Greenback in the Spotlight

Earlier in the Day:

It’s was a quieter start to the day on the economic calendar this morning.  The Aussie Dollar was in action in the early part of the day, with economic data from China also in focus.

Away from the economic calendar, positive updates from Moderna on its COVID-19 vaccine clinical trials were positive.

The markets will also be looking ahead to FED Chair Powell’s speech from Jackson Hole scheduled for later today.

For the Aussie Dollar

Private new CAPEX fell by 5.9% in the 2^nd quarter, following a 1.6% decline from the 1^st quarter. Economists had forecast an 8.4% slide.

According to the ABS,

• Plant and machinery capital expenditure fell by 6%, following a 2.3% decline in the 1^st quarter.
• Building expenditures fell by 4%, following a 1.1% decline in the 1^st quarter.

The Aussie Dollar moved from $0.72388 to $0.72344 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.01% to $0.7234.

From China

Industrial profits increased by 19.6%, year-on-year, in July. In June, profits had increased by 11.5%. Year-to-date, profits were down by 8.1%. This was marginally better than in June when profits had been down by 12.8%.

Elsewhere

At the time of writing, the Japanese Yen was up by 0.03% ¥105.96 against the U.S Dollar, with the Kiwi Dollar up by 0.21% to $0.6635.

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.

A lack of stats will leave the EUR in the hands of geopolitics and market risk sentiment on the day.

There’s Brexit, the U.S and China, COVID-19, and the Jackson Hole Symposium to influence on the day.

At the time of writing, the EUR was up by 0.03% to $1.1833.

For the Pound

It’s also a quiet day ahead on the economic calendar. There are no material stats to provide the Pound with direction.

A lack of stats will continue to leave the Pound in the hands of Brexit, the latest COVID-19 news and numbers, and geopolitical risk.

At the time of writing, the Pound was down by 0.01% to $1.3209.

Across the Pond

It’s a relatively busy day ahead for the U.S Dollar. Key stats include 2^nd estimate GDP numbers, the weekly jobless claims, and pending home sales figures.

While we can expect some interest in the GDP numbers, the weekly jobless claims will likely be the key driver. We don’ anticipate that the pending home sales figures will have any influence on the day.

On the U.S economy and monetary policy, the Jackson Hole Symposium will be of particular influence. FED Chair Powell is scheduled to speak later this afternoon. Following the gloomy FOMC meeting minutes, will there be any newfound optimism following last week’s private sector PMIs?

Away from the economic calendar, U.S President Trump will no doubt have a few things to say after Powell’s speech…

At the time of writing, the Dollar Spot Index was down by 0.12% to 92.884.

For the Loonie

It’s another quiet day on the economic data front. There are no material stats to provide the Loonie with direction.

On the monetary policy front, BoC Gov. Council Member Maklem is scheduled to speak. Expect any chatter on monetary policy and the economic outlook to influence.

Away from the economic calendar, chatter from the Jackson Hole Symposium will influence sentiment towards crude oil demand… Any gloomy chatter would likely weigh on crude oil prices and also the Loonie.

At the time of writing, the Loonie was down by 0.05% to C$1.3150 against the U.S Dollar.

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