Busy economic calendar emphasizes euro, pound and greenback
Early in the day:
The start of the day on the economic calendar was particularly busy this morning. The Kiwi dollar, Australian dollar and Japanese yen were all in action this morning. China’s economic data was also the center of attention.
For the Kiwi Dollar
Business confidence figures were the key statistic of the morning in New Zealand.
In September, the ANZ Business Confidence Index fell from -14.2 to -7.2, down from -6.8 previously.
According to the latest ANZ report,
Export intentions fell from 8.4 to 7.4, while they were up from 5.7.
Investment intentions, however, fell from 15.4 to 9.2%, against 12.2 previously.
Cost expectations continued to weigh down. While it was down from 85.0 to 84.2, it was an increase from the preliminary 82.7.
Employment intentions slipped from 17.9 to 14.1, down from 14.7 previously.
Earnings expectations disappointed, falling from -9.5 to -15.6. (Preliminary: -13.1).
Building permits were also issued in the early hours, but had a moderate impact on the Kiwi. Consents rose 3.8% month-on-month in August.
The Kiwi dollar rose from $ 0.68691 to $ 0.68699 when the business confidence figures were released. At the time of this writing, the Kiwi Dollar was up 0.10% to $ 0.6876.
In August, retail sales fell 3.2%, reversing a 2.4% increase in July. Economists were forecasting a drop of 1%.
Industrial production fell 3.2% in August, following a 1.5% drop in July. Economists were forecasting a 0.5% drop in production.
According to the Ministry of Economy, Trade and Industry,
The industries that mainly contributed to the decline are:
The industries that mainly contributed to an increase are:
Ceramic, stone and clay products.
Inorganic and organic chemicals.
Petroleum and coal products.
The Japanese yen fell from 111.958 to 111.935 yen when the numbers were released. As of this writing, the Japanese yen was up 0.10% to 111.850 yen against the US dollar.
Building permits and credit to the private sector have drawn attention.
In August, building permits jumped 6.8, partially reversing an 8.6% drop in July.
More significantly, credit to the private sector increased 0.6% month-on-month in August. In July, credit to the private sector had increased 0.7%.
According to the RBA,
Home loans increased 0.6%, following a 0.6% increase in July.
Business credit also rose 0.6%, after rising 1.1% the month before.
Personal credit, however, fell 0.6%, following a 1.1% drop in July.
Over one year, credit to the private sector was up 4.7% in August. In July, credit to the private sector was up 2.1%.
The Australian dollar fell from $ 0.71909 to $ 0.71927 when figures were released that coincided with China’s statistics. At the time of this writing, the Australian dollar was up 0.26% to $ 0.7195.
The private sector PMIs for September were in the spotlight this morning.
The NBS manufacturing PMI rose from 50.1 to 49.6 from an expected hold at 50.1, while the non-manufacturing PMI jumped from 47.5 to 53.2.
However, the market’s preferred Caixin Manufacturing PMI was more influential. In September, the manufacturing PMI index saw a slight increase from 49.2 to 50.0 against 49.5 expected.
According to the Caixin survey,
New work increased for the first time in 3 months, supported by firmer domestic demand.
However, export sales continued to decline.
Production fell for a 2sd consecutive month, the rate of decline eased from August and was marginal. Weak demand and material shortages were highlighted as contributing factors.
Employment declined slightly as companies sought to improve their efficiency.
Inflationary pressures intensified in September as the average cost of inputs rose sharply.
The rate of inflation was the fastest in 4 months amid reports of higher costs for energy and raw materials.
Businesses expect production to increase over the next year, with optimism reaching its highest level since June.
The Australian dollar rose from $ 0.71921 to $ 0.71948 on the release of the Caixin manufacturing PMI.
The day to come
For the euro
It’s a busy day on the economic calendar. At the start of the European session, French consumer spending and German unemployment will generate a lot of interest.
Later today, preliminary inflation figures for Italy and Germany will also influence. Unless there is a marked change in euro area unemployment, euro area unemployment figures should have a moderate impact on the euro.
At the time of this writing, the Euro was up 0.05% to $ 1.1604.
For the pound
It’s a busier day on the economic calendar.
2sd GDP figures for the quarter are expected. Unless there are sharp revisions, however, the numbers are unlikely to have an impact as the pound continues to struggle.
At the time of this writing, the British pound was up 0.12% to $ 1.3443.
Across the pond
It’s a relatively busy day ahead. GDP figures finalized for 2sd September quarter and Chicago PMI figures are expected along with weekly jobless claims figures.
Expect unemployment claims to have the biggest impact on the economic data front.
From Capitol Hill, updates will likely have a bigger influence alongside any chatter about monetary policy.
At the time of this writing, the US Dollar Spot Index was down 0.04% to 94.297.
For the loonie
It’s a particularly calm day for the Loonie. There are no important statistics outside of Canada to give direction to the loonie.
The lack of statistics will leave the loonie in the hands of market risk sentiment that day.
At the time of this writing, the loonie was up 0.11% to C $ 1.2743 against the US dollar.
For an overview of all of today’s economic events, check out our economic calendar.
This article originally appeared on FX Empire