Earlier in the Day:
It’s was another busy start to the week on the economic calendar this morning. The Japanese Yen and the Aussie Dollar were in action, with economic data from China also in focus.
Later this morning, the RBA will also be in action, delivering its final scheduled monetary policy decision of the year.Advertisement
For the Japanese
Employment and capital spending figures were in focus early on.
In the 3rd quarter, capital spending slid by 10.6%, following an 11.3% slide from the 2nd quarter. Economists had forecast a 12% tumble.
The jobs/applications ratio increased from 1.03 to 1.04. Economists had forecast a ratio of 1.03.
The Japanese Yen moved from ¥104.344 to ¥104.347 upon release of the figures. At the time of writing, the Japanese Yen was down by 0.03% to ¥104.34 against the U.S Dollar.
For the Aussie Dollar
In the early hours, the AIG Manufacturing Index drew attention. In November, the index fell from 56.3 to 52.10.
According to the November report,
- An easing of activity restrictions in Victoria supported a return to expansion for the sector in October.
- In November, there was a slowdown in growth, however, due to lost production as a result of a 3-day shut down in South Australia.
- The agriculture sector drove demand for F&B and machinery & equipment manufacturers, however.
- Victoria reported its first month of expansion since March.
The Aussie Dollar moved from $0.73428 to $0.73419 upon release of the figures that preceded the RBA monetary policy decision.
Also in focus ahead of the RBA were October building approvals and 3rd quarter current account figures.
In October, building approvals rose by 3.8%, following a 15.4% jump in September. Economists had forecast a 3% decline.
According to the ABS,
- Private sector dwellings excluding houses rose by 6.2%, while private sector houses rose by 3.1%.
The current account surplus narrowed from A$17.7bn to A$10.0bn in the 3rd quarter, coming in ahead of a forecasted A$7.1bn surplus.
The Aussie Dollar moved from $0.73585 to $0.73578 upon release of the figures that preceded private sector PMIs from China and the RBA.
Out of China
The Caixin Manufacturing PMI rose from 53.6 to 54.9 in November. Economists had forecast a decline to 53.5.
According to the November survey,
- Operating conditions saw the strongest improvement for a decade.
- Growth of both output and new orders jumped to 10-year highs.
- Domestic demand continued to drive new orders, with overseas new orders rising at a less marked pace.
- Employment increased at the fastest pace since May 2011 as a result.
- Increased demand led to stronger inflationary pressures, though both input costs and output charges saw marked increases.
- Purchase activity was also on the rise, with the increase in purchase activity the sharpest since 2011.
The Aussie Dollar moved from $0.73546 to $0.73590 upon release of the figures that preceded the RBA. At the time of writing, the Aussie Dollar was up by 0.19% to $0.7358.
At the time of writing, the Kiwi Dollar was up by 0.09% to $0.7023.Advertisement
The Day Ahead:
For the EUR
It’s a busy day ahead on the economic calendar. Manufacturing PMIs from Italy and Spain are due out along with unemployment figures from Germany. Finalized manufacturing PMIs from France, Germany, and the Eurozone are also due out.
Barring material revisions to prelim figures, Italy and the Eurozone’s PMIs and German unemployment figures will have the greatest influence.
Away from the economic calendar, Brexit and COVID-19 news updates will also remain in focus.
At the time of writing, the EUR was up by 0.18% to $1.1949.
For the Pound
It’s a quiet day ahead on the economic calendar. November’s finalized manufacturing PMI is due out that should have a muted impact on the Pound.
Updates from Brexit negotiations will remain the key driver on the day. While the news is mixed, hopes of a deal continue to prop up the Pound.
At the time of writing, the Pound was up by 0.19% to $1.3348.
Across the Pond
It’s a relatively quiet day ahead for the U.S Dollar. The ISM Manufacturing and finalized Markit Manufacturing PMI figures are due out later today.
Expect the ISM Manufacturing PMI to have a greater influence from the two.
Away from the economic calendar, any chatter from Capitol Hill and COVID-19 news updates will continue to influence.
At the time of writing, the Dollar Spot Index was up by 0.03% to 91.901.
For the Loonie
It’s a busy day on the economic data front. Key stats include 3rd quarter and September GDP numbers.
Following a lack of economic data last week, expect plenty of interest in today’s numbers. Hopes of a COVID-19 vaccine before the end of the year should soften the effects of any disappointing numbers, however.
At the time of writing, the Loonie was up by 0.18% to C$1.2977 against the U.S Dollar