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Private Sector PMIs from China Impress, as Focus Shifts to Brexit and the Pound

Earlier in the Day:

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

For the Japanese

Industrial production and retail sales were in focus in the early hours.

Industrial production rose by 3.8% in October, according to prelim figures from the Ministry of Economy, Trade, and Industry. In September production had jumped by 3.9%.

According to the Ministry of Economy, Trade, and Industry, retail sales jumped by 6.4% in October, year-on-year. In September, retail sales had tumbled by 8.7%. Economists had forecast a 7.7% slide.

The Japanese Yen moved from ¥104.104 to ¥104.064 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.21% to ¥103.87 against the U.S Dollar.

For the Kiwi Dollar

Business confidence was in the spotlight. In November, the ANZ Business Confidence rose from -15.7 to -6.9. In October the index had risen from -28.5 to -15.7.

The Kiwi Dollar moved from $0.70348 to $0.70379 upon release of the figures. At the time of writing, the Kiwi Dollar was up by 0.21% to $0.7042.

Out of Australia

Company gross operating profits for the 3rd quarter increased by 3.2%, following a 15% surge in the 2nd quarter. Economists had forecast a 4.5% rise.

Private sector credit stalled in October, following a 0.1% increase in September.

The Aussie Dollar moved from $0.73983 to $0.73950 upon release of the figures that preceded private sector PMIs from China.

Out of China

Private sector PMIs were in focus this morning. In November, the NBS Manufacturing PMI rose from 51.4 to 52.1, coming in ahead of a forecasted increase to 51.5. The Non-Manufacturing PMI increased from 56.2 to 56.4, supporting a rise in the composite PMI from 55.3 to 55.7.

The Aussie Dollar moved from $0.74023 to $0.74073 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.15% to $0.7398.

The Day Ahead:

For the EUR

It’s a relatively busy day ahead on the economic calendar. Prelim November inflation figures for Spain, Italy, and Germany are due out later today.

Barring particularly dire numbers, however, the stats should have a muted impact on the EUR. Deflationary pressures are expected to build as a result of the COVID-19 2nd wave. With the ECB preparing to deliver further easing next month, today’s stats are unlikely to shift the ECB’s position.

Away from the economic calendar, Brexit and COVID-19 news will continue to influence.

At the time of writing, the EUR was up by 0.08% to $1.1972.

For the Pound

It’s a particularly quiet day ahead on the economic calendar. There are no material stats due out, leaving the Pound in the hands of Brexit and market risk sentiment.

Brexit negotiations resumed on the weekend. Expect plenty of influence from updates and chatter throughout the day.

At the time of writing, the Pound was up by 0.17% to $1.3333.

Across the Pond

It’s a relatively quiet day ahead for the U.S Dollar. Chicago’s PMI for November and pending home sales figures for October are due out later today.

Following the better than expected prelim November private sector PMIs last week, the numbers would need to be dire to support the Dollar.

Away from the economic calendar, chatter from Capitol Hill will need monitoring. Stimulus talk and COVID-19 containment plans will be key drivers.

At the time of writing, the Dollar Spot Index was down by 0.11% to 91.693.

For the Loonie

It’s a quiet day on the economic data front. There are no material stats to provide the Loonie with direction.

A lack of stats will leave the Loonie in the hands of COVID-19 news updates and any U.S stimulus chatter from Capitol Hill.

At the time of writing, the Loonie was up by 0.02% to C$1.2986 against the U.S Dollar.

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