In This Article:
Earlier in the Day:
It was another busy start to the day on the economic calendar this morning. The Japanese Yen, the Aussie Dollar, the Kiwi Dollar were all in action this morning, with economic data from China also in focus.
On the monetary policy front, the RBA will also deliver its June policy decision later this morning.
For the Japanese Yen
Capital spending and finalized manufacturing PMI figures were in focus
In the 1st quarter, capital spending fell by 7.8%, year-on-year. In the 4th quarter, capital spending had been down by 4.8%.
The manufacturing PMI declined from 53.6 to 53.0 in May. This was an upward revision to a prelim 52.5, however
According to the finalized May survey,
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There was a moderate improvement in operating conditions.
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Production volumes and new orders continued to provide support in spite of softer expansions in May.
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Staffing levels rose for a 2nd consecutive month, with businesses optimistic about the year-ahead.
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Business sentiment hit the second highest level in the index’s 9-year history.
The Japanese Yen moved from ¥109.511 to ¥109.412 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.16% to ¥109.40 against the U.S Dollar.
For the Kiwi Dollar
Building consents rose by 4.8% in the month of April. In March, consents had surged by 19.2%.
According to NZ Stats,
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Compared with April 2020, consents were up 84%.
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In year ended April 2021, the number of new homes consented stood at a series high 42,848.
The Kiwi Dollar moved from $0.72793 to $0.72804 upon release of the figures. At the time of writing, the Kiwi Dollar up by 0.22% to $0.7286
For the Aussie Dollar
The AIG Manufacturing Index increased from 61.7 to 61.8 in May.
The Aussie Dollar moved from $0.77387 to $0.77411 upon release of the figures.
Building approvals slid by 8.6% in April, partially reversing a 17.4% surge from March. Economists had forecast a 10.0% tumble.
According to the ABS,
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Private sector dwellings excluding houses fell 28.6%, while private sector houses rose 4.6%.
Company Operating Profits also failed to impress.
According to the ABS, company gross operating profits declined by 0.3% in the 1st quarter following a 4.8% fall from the 4th quarter of last year. Economists had forecast a 3.0% rise.
Current account figures were also in focus this morning.
According to the ABS,
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Australia’s current account surplus jumped from A$14.5bn to a record A$18.3bn in the 1st quarter. Economists had forecast a rise to A$17.9bn.
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A record A$5.2bn increase in the balance on the goods and services surplus delivered the upside.
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Exports of goods and services rose A$7.8bn, while imports of goods and services rose A$2.6bn.