Earlier in the Day:
It’s was a quieter start to the week on the economic calendar this morning. The Aussie Dollar was in action.
For the Aussie Dollar
The Australian economy was in focus this morning. In the 3rd quarter, the economy grew by 3.3%, quarter-on-quarter, following a 7.0% contraction in the 2nd quarter. Economists had forecast of 2.6% growth.
According to the ABS,
- The economy only saw a partial recovery in the September quarter. As a result, economic activity fell 3.8% through the year to September quarter.
- Household spending jumped by 7.9% to drive the economy, with the upside coming from an easing of lockdown measures.
- In spite of record quarterly growth in household spending, the level in September was 6.8% lower than that recorded in the December Quarter 2019.
- Compensation of employees rose 2.3% as hours worked increased. The household saving to income ratio remained elevated at 18.9%. This was down from a June quarter 22.1%, however.
- Net trade detracted 1.9 percentage points from GDP, the largest detraction since the 3rd quarter of 1980.
- A demand-driven surge in imports and a fall in the exports of goods and services weighed.
The Aussie Dollar moved from $0.73797 to $0.73855 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.03% to $0.7373.
The Day Ahead:
For the EUR
It’s a relatively busy day ahead on the economic calendar. German retail sales and Spanish and Eurozone unemployment figures are due out.
Barring dire unemployment figures from the Eurozone, German retail sales figures will have the greatest impact.
Away from the economic calendar, Brexit and COVID-19 news updates remain key drivers, however.
At the time of writing, the EUR was down by 0.03% to $1.2067.
For the Pound
It’s a particularly quiet day ahead on the economic calendar. There are no material stats due out, leaving the Pound firmly in the hands of Brexit updates.
At the time of writing, the Pound was down by 0.02% to $1.3417.
Across the Pond
It’s a relatively quiet day ahead for the U.S Dollar. November’s ADP Nonfarm Employment Change figures are due out later today. With market concerns over the U.S labor market recovery lingering, today’s stats will provide riskier assets with direction.
Hopes of an imminent COVID-19 vaccine, however, would limit the effect of any disappointing numbers, however.
Away from the economic calendar, any chatter from Capitol Hill and COVID-19 news updates will continue to influence.
At the time of writing, the Dollar Spot Index was up by 0.09% to 91.231.
For the Loonie
It’s a quiet day on the economic data front. There are no material stats due out to provide the Loonie with direction.
The lack of stats will leave the Loonie in the hands of crude oil inventories and market risk sentiment.
At the time of writing, the Loonie was down by 0.02% to C$1.2938 against the U.S Dollar.
For a look at all of today’s economic events, check out our economic calendar.