In This Article:
Earlier in the Day:
It was a busy start to the day on the economic calendar this morning. The Japanese Yen, and the Aussie Dollar were in action this morning. Economic data from China was also in focus.
For the Japanese Yen
Capital spending increased by 5.3%, year-on-year, in the 2nd quarter, partially reversing a 7.8% slide from the previous quarter.
The Japanese Yen moved from ¥110.002 to ¥110.082 upon release of the figures. At the time of writing, the Japanese Yen was down by 0.17% to ¥110.210 against the U.S Dollar.
For the Aussie Dollar
Earlier in the session, manufacturing data had disappointed, with the AIG Manufacturing PMI falling from 60.8 to 51.6. There was little influence, however, with the markets looking ahead to GDP numbers and PMI numbers from China.
In the 2nd quarter, the Australian economy expanded by 0.7%, quarter-on-quarter, following 1.8% growth in the previous quarter. Economists had forecast growth of 0.5%.
Year-on-year, the economy grew by 9.6% versus a forecasted 9.2%. In the 1st quarter, the economy had grown by 1.1%.
The Aussie Dollar moved from $0.73097 to $0.73157 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.04% to $0.7319.
Out of China
Private sector PMI numbers were the key stats of the morning.
In August, the Caixin Manufacturing PMI fell from 50.3 to 49.2. Economists had forecast a more modest decline to 50.2.
According to the August survey,
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It was the first fall in output since February 2020.
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Total new work fell for a second consecutive month, though the decline was modest. Demand was muted at home and overseas as a result of the COVID-19 pandemic.
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New exports declined for the first time since February.
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Employment saw a modest decline after remaining unchanged in July, though some firms reduced headcounts due to reduced output requirements.
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Higher raw material prices and greater transportation costs drove a further marked increase in overall input prices. Factory gate prices rose only modestly, however.
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Business optimism remained strong overall, though unchanged from July’s 15-month low.
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Concerns over how long the pandemic will take to be brought under control weighed on sentiment.
The Aussie Dollar moved from $0.73157 to $0.73167 upon release of the figures that followed GDP numbers from Australia.
Elsewhere
At the time of writing, the Kiwi Dollar was down by 0.01% to $0.7044.
The Day Ahead
For the EUR
It’s another busy day ahead on the economic data front. Ahead of the European open, German retail sales figures will draw interest. With consumer spending key, we can expect EUR sensitivity to the numbers.