In This Article:
Earlier in the Day:
It was a busier start to the day on the economic calendar. The Kiwi Dollar and Japanese Yen were in action early this morning. Later this morning, the RBA and Aussie Dollar are also in the spotlight.
Away from the morning stats, the markets responded to U.S ISM Non-manufacturing PMI numbers from Monday.
Continued optimism over an economic recovery amidst spiking new COVID-19 cases weighed on the Greenback.
COVID-19 numbers continued to hit concerning levels, though the markets remained focus on the economic recovery and not news of renewed lockdown measures across the globe.
Looking at the latest coronavirus numbers
On Monday, the number of new coronavirus cases rose by 177,554 to 11,713,082. On Sunday, the number of new cases had risen by 156,610. The daily increase was higher than Sunday’s rise and 153,341 new cases from the previous Monday.
Germany, Italy, and Spain reported 1,876 new cases on Monday, which was up from 407 new cases on Sunday. On the previous Monday, 803 new cases had been reported. Notably, Spain reported 1,244 new cases on Monday. This was the highest since 22nd May and follows news of a lockdown within the Catalonia region.
From the U.S, the total number of cases rose by 45,706 to 3,028,861 on Monday. On Sunday, the total number of cases had increased by 47,385. On Monday, 29th June, a total of 41,940 new cases had been reported.
For the Kiwi Dollar
The NZIER Quarterly Survey of Business Survey (QSBO) showed that a net 63% of businesses expect a deterioration in general economic conditions in the 2nd quarter. In the 1st quarter, a net 67% of businesses had expected a deterioration.
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A net 37% of businesses reported a decline in own trading activity, which was the lowest since Mar-09.
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While this was expected as a result of lockdown measures, a net 25% of businesses also expect weaker demand in the next quarter.
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The negative sentiment towards the quarter ahead was attributed to pre-general election uncertainty and over COVID-19.
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News of countries reporting fresh spikes added to uncertainty over how the COVID-19 pandemic would play out.
The Kiwi Dollar moved from $ to $ upon release of the figures. At the time of writing, the Kiwi Dollar was up by 0.14% to $0.6564.
For the Japanese Yen
Household spending fell by 0.1% in May, month-on-month, partially reversing a 6.2% decline from April. Economists had forecast a 1.8% increase. Year-on-year, household spending was down by 16.2%, following an 11.1% slide in April. Economists had forecast a 12.2% tumble.
According to the Statistic Bureau,