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The EUR, the Loonie. and the Dollar are in Focus, with FED Chair Powell also in the Spotlight Today

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·4 min read
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Earlier in the Day:

It was a busy start to the day on the economic calendar this morning. The Kiwi Dollar, the Japanese Yen, and the Aussie Dollar were in action this morning, with economic data from China also in focus.

For the Japanese Yen

Industrial production rose by 1.1% in October, according to prelim figures after having fallen by 5.4% in September. Economists had forecast a 1.8% rise.

According to the Ministry of Economy, Trade and Industry,

  • Industries that mainly contributed to the increase were:

    • Motor vehicles.

    • Production machinery.

    • General-purpose and business-oriented machinery.

  • Industries that mainly contributed to the decrease were:

    • Transport equipment (excl. motor vehicles).

    • Inorganic and organic chemicals.

    • Pulp, paper, and paper products.

  • Forecasts for November 2021 are for a 9.0% increase in production, which was up from 5.7% in the previous survey.

  • For December, forecasts are for production to rise by 2.1%.

The Japanese Yen moved from ¥113.831 to ¥113.821 upon release of the figures. At the time of writing, the Japanese Yen was down by 0.19% to ¥113.750 against the U.S Dollar.

For the Aussie Dollar

Building approvals and private sector credit were in focus this morning.

Building approvals tumbled by 12.9% in October after having fallen by 4.3% in September. Economists had forecast a 2% decline.

Private sector credit rose by a further 0.5% month-on-month in October, following a 0.6% increase in September.

According to the RBA,

  • Business credit rose by 0.5%, with housing credit up by 0.6%.

  • While housing credit had risen by 0.6% in the month prior, business credit had seen a larger 0.7% increase.

  • Personal credit was flat after a 0.7% decline in September.

The Aussie Dollar moved from $0.71455 to $0.71432 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.03% to $0.7145.

For the Kiwi Dollar

In November, the ANZ Business Confidence Index fell from -13.4 to -16.4, which was up from a prelim -18.1.

According to the latest ANZ Report,

  • Cost expectations rose from 87.2 to 88.7, with profit expectations falling from -6.2 to -9.7.

  • Price intentions were also on the rise, increasing from 65.5 to 66.5.

  • Employment intentions rose from 10.9 to 15.8, however.

  • Export intentions rose from 8.6 to 9.5, with investment intentions up from 13.8 to 16.3.

The Kiwi Dollar moved from $0.68297 to $0.68231 upon release of the figures. At the time of writing, the Kiwi Dollar was down by 0.04% to $0.6822.

Out of China

In November, the NBS Manufacturing PMI rose from 49.2 to 50.1, while the Non-Manufacturing PMI slipped from 52.4 to 52.3.

The Aussie Dollar moved from $0.71414 to $0.71428 upon release of the figures.

The Day Ahead

For the EUR

It’s a busy day ahead on the economic calendar.

Prelim November inflation figures for France, Italy, and the Eurozone are due out along with French consumer spending and 3rd quarter GDP numbers. From Germany, unemployment figures for November will also draw interest.

Expect the Eurozone’s inflation figures and Germany’s unemployment numbers to be key on the economic data front.

At the time of writing, the EUR was up by 0.02% to $1.1293.

For the Pound

It’s a particularly quiet day ahead on the economic calendar. There are no material stats due out of the UK to provide the Pound with direction.

The lack of stats will leave the Pound in the hands of central bank chatter and COVID-19 news.

At the time of writing, the Pound was up by 0.05% to $1.3321.

Across the Pond

It’s a relatively quiet day ahead. Consumer confidence figures for November will be in focus later today.

Expect plenty of market sensitivity to the numbers as consumers respond to news of rising COVID-19 cases and a new strain.

On the monetary policy front, FED Chair Powell will be delivering testimony, which will also influence.

At the time of writing, the U.S Dollar Spot Index was down by 0.13% to 96.211.

For the Loonie

It’s a busy day ahead, with 3rd quarter GDP numbers to provide the Loonie with direction later today.

Away from the economic calendar, COVID-19 news updates will need monitoring.

At the time of writing, the Loonie was flat at C$1.2741 against the U.S Dollar.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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