Economic data puts the euro and the dollar in the spotlight, with the RBA also in action early in the day
Early in the day:
It was a busy start to the day on the economic calendar. this morning. The Kiwi dollar and Japanese yen were in action. Later this morning, the RBA will issue its July monetary policy decision.
For the Kiwi Dollar
Business confidence was at the center of concerns early in the morning.
In the 2sd quarter, NZIER business confidence rose 7%, partially reversing a 13% drop from the previous quarter. Economists were forecasting a drop of 7%.
According to the NZIER, business activity has also picked up strongly, with a net 26% of businesses reporting increased demand.
The Kiwi dollar fell from $ 0.70217 to $ 0.70362 when the figures were released. At the time of this writing, the Kiwi Dollar was up 0.43% to $ 0.7057.
For the Japanese yen
Household spending fell 2.1% in May, month-on-month, which was better than the expected decline of 3.2%. In April, spending rose 0.1%.
Year over year, household spending rose 11.6%, ahead of an expected increase of 11.0%. In April, household spending rose 13.0%.
According to the Bureau of Statistics,
- Year-on-year, spending on housing (+ 28.9%), culture and leisure (+ 24.0%), transport and communications (+ 23.5%) and education (+22 , 8%).
- Spending on medical care increased 14.9%, while spending on clothing and footwear increased 13.0%.
- While food expenditure increased by 2.1%, there were declines in expenditure on fuel, lighting and water (-2.4%) and household furniture and utensils (-2, 6%).
The Japanese Yen fell from 110.952 to 110.935 on the release of the data. At the time of this writing, the Japanese yen was up 0.03% to 110.940 against the US dollar.
For the Australian dollar
There weren’t any important stats to consider in the early hours. Later this morning, however, the RBA will release its July monetary policy decision.
With the RBA supposed to stay true to its policy, the focus will be on reporting rates.
At the time of this writing, the Australian dollar was up 0.17% to $ 0.7543.
The day to come
For the euro
It’s another busy day on the economic data front. German factory orders and Eurozone retail sales figures will be the focus of concern later today. The ZEW economic sentiment figures for Germany and the Eurozone will also have an influence.
Expect German factory orders and economic sentiment numbers for Germany and the Eurozone to be key.
At the time of this writing, the euro was up 0.01% to $ 1.1865.
For the pound
It’s a calm day ahead on the economic calendar. Construction PMI figures for June are due later today.
The numbers are unlikely to influence, however, as markets are more focused on the government’s plans to ease restrictions.
At the time of this writing, the pound was up 0.08% to $ 1.3855.
Across the pond
The service sector is in the spotlight later today. The finalized PMI figures from the Markit survey services for June are expected along with the ISM non-manufacturing PMI for June.
Expect the market’s preferred non-manufacturing ISM PMI to have a bigger impact on the dollar and the market in general.
Outside of the economic calendar, chatter from FOMC members will also need to be watched.
Earlier this week, the Dollar Spot Index fell 0.02% to end the day at 92.212.
For the loonie
It’s another particularly calm day ahead on the economic data front. There are no hard statistics to give direction to the loonie. A lack of statistics will continue to leave the loonie in the hands of market risk sentiment that day.
At the time of this writing, the loonie was up 0.02% to C $ 1.2339 against the US dollar.
For an overview of all of today’s economic events, check out our economic calendar.