U.S Nonfarm Payrolls, COVID-19 Vaccine News, and Brexit in Focus

Earlier in the Day:

It’s was a quieter start to the week on the economic calendar this morning. The Aussie Dollar was back in action in the early hours

For the Aussie Dollar

Finalized retail sales figures for October were in focus.

According to the ABS, retail sales rose by 1.4% in October, which was down from a prelim 1.6% jump. In September, retail sales had fallen by 1.1%.

According to the ABS,

• The reopening of physical stores in Victoria led to the national rise for cafes, restaurants, and takeaway food services (+5.4%).
• There were also sales increases for clothing, footwear, and personal accessory retailing (+6.8%), other retailing (+2.0%), and department stores (+4.5%).
• Household goods retailing fell by 1%, however.
• Compared with October 2019, national turnover was up by 7.1%.

The Aussie Dollar moved from $0.74398 to $0.74412 upon release of the figures. At the time of writing, the Aussie Dollar was flat at $0.7439.

From Elsewhere

At the time of writing, the Japanese Yen was up by 0.03% to ¥103.81 against the U.S Dollar, while the Kiwi Dollar was down by 0.03% to $0.7075.

The Day Ahead:

For the EUR

It’s a relatively quiet day ahead on the economic calendar. German factory orders for October and construction PMI figures for November are due out later today.

Expect October’s factory orders to have the greatest impact. Following October and November’s Manufacturing PMIs, the markets will be looking for an uptick in demand. COVID-19 containment measures could weigh on demand from within the Euro area, however.

Away from the economic calendar, Brexit and vaccine updates will also provide direction.

At the time of writing, the EUR was up by 0.06% to $1.2151.

For the Pound

It’s a relatively quiet day ahead on the economic calendar. Construction PMI figures for November are due out. We don’t expect too much influence from the numbers, however, with Brexit the key driver.

At the time of writing, the Pound was up by 0.07% to $1.3459.

Across the Pond

It’s a busy day ahead for the U.S Dollar. Nonfarm payroll and unemployment figures for November will provide riskier assets with direction.

The general consensus is that the labor market recovery has stalled. While progress towards a COVID-19 vaccine is positive, the depth of the economic damage will draw interest.

Other stats include nonfarm productivity, wage growth, unit labor costs, and trade and factory orders. These stats are unlikely to have a material impact on market risk sentiment, however.

Away from the economic calendar, any chatter from Capitol Hill and COVID-19 vaccine news updates will continue to influence.

At the time of writing, the Dollar Spot Index was up by 0.09% to 90.634.

For the Loonie

It’s a relatively busy day on the economic data front. October trade and November unemployment figures are due out of Canada.

Expect the unemployment figures to have the greatest impact on the Loonie. With the COVID-19 vaccine on the horizon, the markets will likely accept any disappointing trade data.

Away from the economic calendar, expect geopolitics and COVID-19 to continue to influence.

At the time of writing, the Loonie was down by 0.02% to C$1.2865 against the U.S Dollar.

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