It was a particularly busy start to the day on the economic calendar this morning. The Kiwi Dollar, the Aussie Dollar, and the Japanese Yen were all in action this morning. Economic data from China was also in focus.
For the Kiwi Dollar
Business confidence figures were the key stat of the morning from New Zealand.
In September, the ANZ Business Confidence Index increased from -14.2 to -7.2, which was down from a prelim -6.8.
Export intentions fell from 8.4 to 7.4, while up from a prelim 5.7.
Investment intentions fell from 15.4 to 9.2%, however, which was down from a prelim 12.2.
Cost expectations continued to weigh. While down from 85.0 to 84.2, this was up from a prelim 82.7.
Employment intentions slipped from 17.9 to 14.1, which was down from a prelim 14.7.
Profit expectations disappointed, falling from -9.5 to -15.6. (Prelim: -13.1).
Building consents were also out in the early hours but had a muted impact on the Kiwi. Consents rose by 3.8%, month-on-month, in August.
The Kiwi Dollar moved from $0.68691 to $0.68699 upon release of the business confidence figures. At the time of writing, the Kiwi Dollar was up by 0.10% to $0.6876.
The Japanese Yen
In August, retail sales slid by 3.2%, reversing a 2.4% rise in July. Economists had forecast a 1% decrease.
Industrial production fell by 3.2% in August, following a 1.5% decline in July. Economists had forecast for production to fall by 0.5%.
Industries that mainly contributed to the decline were:
Motor vehicles
Electrical machinery, & information & communication electronics equipment.
Production machinery.
Industries that mainly contributed to an increase were:
Ceramics, stone, & clay products.
Inorganic & organic chemicals.
Petroleum & coal products.
The Japanese Yen moved from ¥111.958 to ¥111.935 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.10% to ¥111.850 against the U.S Dollar.
The Aussie Dollar
Building approvals and private sector credit drew attention.
In August, building approvals jumped by 6.8, partially reversing an 8.6% slide in July.
More significantly, private sector credit rose by 0.6%, month-on-month, in August. In July, private sector credit had risen by 0.7%.
Housing credit increased by 0.6%, following a 0.6% rise in July.
Business credit also rose by 0.6%, following a 1.1% increase in the month prior.
Personal credit fell by 0.6%, however, following a 1.1% slide in July.
Year-on-year, private sector credit was up 4.7% in August. In July, private sector credit had been up by 2.1%.
The Aussie Dollar moved from $0.71909 to $0.71927 upon release of the figures that coincided with stats from China. At the time of writing, the Aussie Dollar was up by 0.26% to $0.7195.
From China
Private sector PMIs for September were in focus this morning.
The NBS Manufacturing PMI fell from 50.1 to 49.6 versus a forecasted hold at 50.1, while the Non-Manufacturing PMI jumped from 47.5 to 53.2.
Of greater influence, however, was the market’s preferred Caixin Manufacturing PMI. In September, the Manufacturing PMI saw a modest increase from 49.2 to 50.0 versus a forecasted 49.5.
New work increased for the first time in 3-months, supported by firmer domestic demand.
Export sales continued to decline, however.
Production fell for a 2nd consecutive month, through the rate of decline eased from August and was marginal. Subdued demand and material shortages were highlighted as contributory factors.
Employment fell slightly as firms looked to improve efficiency.
Inflationary pressures picked up in September, with average input costs rising sharply.
The rate of inflation was the quickest for 4-months amid reports of higher costs for energy and raw materials.
Companies expect output to increase over the next year, with optimism rising to its highest level since June.
The Aussie Dollar moved from $0.71921 to $0.71948 upon release of the Caixin manufacturing PMI.
The Day Ahead
For the EUR
It’s a busy day ahead on the economic calendar. Early in the European session, French consumer spending and German unemployment will draw plenty of interest.
Later in the day, prelim inflation figures from Italy and Germany will also influence. Barring a marked shift in Eurozone unemployment, unemployment figures from the Eurozone should have a muted impact on the EUR.
At the time of writing, the EUR was up by 0.05% to $1.1604.
2nd quarter GDP numbers are due out. Barring any marked revisions, however, the numbers are unlikely to have an impact as the Pound continues to struggle.
At the time of writing, the Pound was up by 0.12% to $1.3443.
Across the Pond
It’s a relatively busy day ahead. Finalized GDP numbers for the 2nd quarter and Chicago PMI figures for September are due out along with the weekly jobless claim figures.
Expect the jobless claims to have the greatest impact on the economic data front.
From Capitol Hill, news updates will likely have a greater influence alongside any monetary policy chatter.
At the time of writing, the U.S Dollar Spot Index was down by 0.04% to 94.297.
For the Loonie
It’s a particularly quiet day ahead for the Loonie. There are no major stats due out of Canada to provide the Loonie with direction.
The lack of stats will leave the Loonie in the hands of market risk sentiment on the day.
At the time of writing, the Loonie was up by 0.11% to C$1.2743 against the U.S Dollar.
For a look at all of today’s economic events, check out our economic calendar.
