Currency exchange notice board

A China Data Dump Sets the Tone, with the Economic Calendar Light Today

Earlier in the Day:

It was a big Asian session this morning, with 2nd quarter GDP numbers, June industrial production and fixed asset investment and retail sales numbers out of China kicking things off.

Out of China

Fixed asset investments rose by 5.8% in June, year-on-year, following a 5.6% rise in May. Economists forecasted a 5.6% rise.

Industrial production increased by 6.3% in June, year-on-year, following a 5.0% rise in May. Economists forecasted a 5.2% increase.

Retail sales jumped by 9.8%, following an 8.6% rise in May. Economists had forecast an 8.3% increase.

Of greater significance, however, was 2nd quarter GDP numbers. The economy grew by 6.2%, year-on-year, in the 2nd quarter, following a 6.4% rise in the 1st quarter. Quarter-on-quarter, the economy grew by 1.6% following a 1.4% rise in the 1st quarter. Economists had forecast a 1.5% rise.

The Aussie Dollar moved from $0.70194 to $0.70220 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.19% to $0.7033.

Elsewhere

The Japanese Yen was down by 0.11% to ¥108.3 against the U.S Dollar, while the Kiwi Dollar was up by 0.42% to $0.6721. Economic data out of China provided direction early on.

In the Asian equity markets, the CSI300 and Hang Seng found support from the China numbers. At the time of writing, the pair was up by 0.39% and 0.09% respectively. The Nikkei was also in the green, up by 0.2%, while the ASX200 was down by 0.51%.

The Day Ahead:

For the EUR

It is a quiet day ahead, with no material stats due out of the Eurozone today. The lack of stats will leave market risk sentiment driven by the stats out of China to provide direction on the day.

Outside of the stats, the geopolitical risk could also influence on the day… There’s Iran and the U.S – China trade war to consider.

At the time of writing, the EUR was up by 0.03% to $1.1273.

For the Pound

It’s also a quiet day ahead on the economic calendar, leaving Brexit and the leadership race in focus.

Souring relations between the U.S and the UK over the diplomatic spat could also influence.

At the time of writing, the Pound was down by 0.01% to $1.2571.

Across the Pond

It’s a relatively quiet day ahead, with NY Empire State manufacturing figures due out later today.

The lack of stats will likely leave the dollar more sensitive to the manufacturing figures on the day. The focus will be on new orders as the U.S – China trade war wages on.

Outside of the numbers, chatter from the Oval Office will also need to be considered on the day.

At the time of writing, the Dollar Spot Index was up by 0.03% to 96.838.

For the Loonie

There are no material stats due out, leaving the Loonie in the hands of market risk appetite.

This morning’s economic data out of China will be the key driver on the day.

The Loonie was down 0.02% at C$1.3030, against the U.S Dollar, at the time of writing.