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, with economic data from China also in focus early this morning.
For the Japanese Yen
Inflation and industrial production figures were in focus this morning.
In April, Tokyo core consumer prices fell by 0.2%, year-on-year, following a 0.1% decline in March. Economists had forecast a 0.2% decline.
According to the Ministry of Internal Affairs and Communication,
- Prices for transportation & communication were down 3.9%, with prices for fuel, light, & water charges sliding by 5.5%.
- There was also a fall in prices for medical care (-0.2%).
- Prices for furniture & household utensils rose by 4.4%, with prices for culture & recreation increasing by 1.1%.
- There were also prices increases for clothes & footwear (+0.7%), housing (+0.5%), and education (+0.5%).
Industrial production rose by 2.2% in March, according to prelim figures, reversing a 1.3% decline in February. Economists had forecast a 2.0% decline.
The Japanese Yen moved from ¥108.883 to ¥108.911 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.09% to ¥108.83 against the U.S Dollar.
Private sector PMI figures for April drew attention this morning.
In April, the NBS Manufacturing PMI fell from 51.9 to 51.1, with the services PMI declining from 56.3 to 54.9. As a result, the NBS Composite PMI eased back from 55.3 to 53.8.
The Aussie Dollar moved from $0.77784 to $0.77758 upon release of the figures that preceded economic data from Australia.
For the Aussie Dollar
Wholesale inflation figures were in focus this morning along with private sector credit numbers.
According to the ABS, the producer price index increased by 0.4% quarter-on-quarter, following a 0.5% rise in the 4th quarter.
- There were price increases for Petroleum refining and petroleum fuel manufacturing (+20.6%), building construction (+0.5%), and accommodation (+5.8%).
- Price for electronic equipment manufacturing fell by 5.3%, with prices falling for other transport equipment manufacturing (-3.1%) and furniture & other manufacturing (-1.7%).
Year-on-year, the producer price index increased by 0.2% in the 1st quarter. In the 4th quarter, the PPI had fallen by 0.1%.
Private sector credit rose by 0.4% in the month of March, following a 0.2% increase in February.
According to the RBA,
- Total credit for housing rose by 0.5%, following a 0.4% increase in February.
- More significantly, however, both business and personal credit were on the rise.
- Personal credit increased by 0.2% after having fallen by 0.5% in February.
- Business credit rose by 0.3% after having stalled in February.
The Aussie Dollar moved from $0.77754 to $0.77799 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.14% to $0.7777.
At the time of writing, the Kiwi Dollar up by 0.07% to $0.7249.
The Day Ahead
For the EUR
It’s a busier day ahead on the economic data front. 1st quarter GDP numbers for France, Germany, and the Eurozone will be in focus later this morning. Inflation figures for France, Italy, and the Eurozone are also due out.
For the Eurozone, unemployment will also draw interest following disappointing unemployment numbers from Germany on Thursday.
Expect Germany and the Eurozone’s GDP numbers to have the greatest impact on the EUR, however.
At the time of writing, the EUR was up by 0.01% to $1.2122.
For the Pound
It’s yet another particularly quiet day ahead on the economic calendar.
There are no material stats to provide the Pound with direction. A lack of stats will leave the Pound in the hands of market risk sentiment and COVID-19 news updates on the day.
At the time of writing, the Pound was up by 0.09% to $1.3957.
Across the Pond
It’s a busy day ahead on the economic calendar. Inflation and personal spending figures are the key stats of the day.
With the FED reinforcing its stance on monetary policy, however, any pickup in inflationary pressures should have a muted impact on the Dollar.
Other stats on the day include Chicago PMI and finalized Michigan consumer expectation and sentiment figures.
We would expect these numbers to have a muted impact on the Dollar and the broader market, however.
At the time of writing, the Dollar Spot Index was up by 0.01% to 90.621.
For the Loonie
It’s a relatively busy day ahead on the economic calendar. GDP figures for February and RMPI numbers for March are due out.
While the numbers will influence, any downside from disappointing numbers will likely be limited.
At the time of writing, the Loonie was up by 0.07% to C$1.2275 against the U.S Dollar.
For a look at all of today’s economic events, check out our economic calendar.