Earlier in the Day:
It was a relatively busy start to the day on the economic calendar this morning. The Aussie Dollar was in action this morning.
For the Aussie Dollar
Economic data this morning included housing sector numbers and business confidence figures. The key stat of the morning was the business confidence figures, however.
In July, the NAB Business Confidence Index fell from 11.0 to -8. Economists had forecast an increase to 14.0.
According to the July Survey,
- Both conditions and confidence took a hit in July, as lockdown measures hit sentiment and the economy.
- In July, the Business Conditions Index fell from 25 to 11 after having fallen from 34 to 25 in June.
Looking at the components,
- The employment sub-index fell from 18 to 10, with the profitability sub-index sliding from 25 to 6.
- Forward orders also saw a sharp fall, sliding from 15 to -6.
- Exports saw a more modest decline from -1 to -2.
- From an RBA perspective, the capacity utilization rate fell from 83.8% to 81.2%. In May, the utilization rate had stood at 84.7%.
From the housing sector, building permits were down by 6.7% following a 7.6% tumble in May, according to finalized figures. This was in line with prelim figures.
The Aussie Dollar moved from $0.73268 to $0.73219 upon release of the figures. At the time of writing, the Aussie Dollar was down by 0.23% to $0.7316.
The Day Ahead
For the EUR
It’s another relatively quiet day ahead on the economic data front. ZEW Economic Sentiment figures for Germany and the Eurozone are due out later today.
Expect both sets of numbers to influence. While economic data from the Eurozone has been upbeat. Concerns over a 3rd quarter slowdown as a result of a spike in Delta variant COVID-19 cases remains.
Weak numbers would test support for the EUR.
At the time of writing, the EUR was down by 0.03% to $1.1733.
For the Pound
It’s another quiet day ahead on the economic calendar. There are no material stats due out to provide the Pound with direction.
At the time of writing, the Pound was down by 0.06% to $1.3838.
Across the Pond
It’s a relatively quiet day ahead on the economic calendar.
Unit labor costs and nonfarm productivity numbers for the 2nd quarter are due out later today.
With the markets looking ahead, however, we don’t expect too much influence from the numbers following the latest NFP numbers.
Any FOMC member chatter, however, would draw plenty of interest.
At the time of writing, the U.S Dollar Spot Index was up by 0.06% to 92.997.
For the Loonie
It’s another particularly quiet day on the economic calendar. There are no material stats due out of Canada to provide the Loonie with direction.
The lack of stats will leave the Loonie in the hands of market risk sentiment on the day.
At the time of writing, the Loonie was down by 0.10% to C$1.2589 against the U.S Dollar.
For a look at all of today’s economic events, check out our economic calendar.