In This Article:
Earlier in the Day:
It was a relatively quiet start to the day on the economic calendar this morning. The Japanese Yen was in action this morning, with economic data from China also in focus. Finalized retail sales figures from Australia were also out but had a muted impact on the Aussie. Retail sales fell by 2.7% in July, which was in line with prelim figures, the decline attributed to the latest lockdown measures.
For the Japanese Yen
Japan’s service sector PMI fell from 47.4 to 42.9 in August, which was down from a prelim 43.5.
According to the August survey,
-
Both activity and new orders signaled the fastest declines since May 2020 as a result of a 4th wave of the pandemic.
-
In spite of this, firms predicted a return in demand, highlighted by an increase in hiring.
-
Firms also remained confidence, though the degree of optimism fell to the joint lowest since January.
The Japanese Yen moved from ¥109.9.41 to ¥109.918 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.05% to ¥109.880 against the U.S Dollar,
From China
The Caixin Services PMI fell from 54.9 to 46.7 in August. Economists had forecast
According to the August survey,
-
Output and new work fell for the first time since April 2020.
-
Firms also reported a fall in workforce numbers, leading to an increase in unfinished work.
-
There was evidence of a softer rise in input costs, however, while prices charged fell slightly due to efforts to secure new business.
-
In August, the degree of optimism fell and remained below the series average, In spite of this, firms generally anticipated that activity would increase.
The Aussie Dollar moved from $0.73980 to $0.74027 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.01% to $0.7401.
Elsewhere
At the time of writing, the Kiwi Dollar was up by 0.04% to $0.7114.
The Day Ahead
For the EUR
It’s a particularly busy day ahead on the economic data front. Service sector PMIs for Italy and Spain and retail sales figures for the Eurozone are due out later today. Finalized service and composite PMIs for France, Germany, and the Eurozone are also due out.
Barring marked revisions to prelim figures, Italy and the Eurozone’s PMIs and Eurozone retail sales figures will be key.
At the time of writing, the EUR was up by 0.06% to $1.1882.
For the Pound
It’s a relatively quiet day ahead on the economic calendar. Finalized service sector PMI numbers for August are due out later today. Expect any revisions to influence.
At the time of writing, the Pound was up by 0.07% to $1.3842.
Across the Pond
It’s a big day for the Greenback and the global financial markets. Nonfarm payroll and ISM Non-Manufacturing PMI numbers for August are due out.