Earlier in the Day:
It was a comparatively busy start to the day on the economic calendar this morning. The Aussie Dollar and Kiwi Dollar were in action within the early a part of the day.
Following positive sentiment across the worldwide financial markets on Tuesday, market attention returned to tensions between China and therefore the U.S.
China markets had been closed since the beginning of May, which had limited the market reaction to the blame game.
Looking at the newest coronavirus numbers,
On Tuesday, the amount of latest coronavirus cases rose by 81,537 to 3,720,873. On Monday, the amount of latest cases had risen by 74,217. The daily increase was above Monday’s rise and a 75,118 increase on the previous Tuesday.
France, Germany, Italy, and Spain reported 4,993 new cases on Tuesday, which was up from 3,642 new cases on Monday. On the previous Tuesday, 6,060 new cases had been reported. Germany reported just 569 news cases, marking a 4th consecutive day of sub-1,000.
From the U.S, the entire number of cases rose by 25,189 to 1,235,456 on Tuesday. On Monday, the entire number of cases had risen by 22,145. On Tuesday, 28th April, the entire new number of cases had risen by 25,258.
For the Kiwi Dollar
1st quarter employment figures were in focus in the early part of the day.
- Employment increased by 0.70% in the 1st quarter, leading to a rise in the unemployment rate from 4.0% to 4.2%. In the 4th quarter, employment had remained unchanged, quarter-on-quarter.
- Economists had forecast a 0.3% decline in employment and an unemployment rate of 4.3%.
According to NZ Stats,
- There was a sharp rise in the number of jobseeker benefit claims at the end of March and early April. This suggests a marked increase in the unemployment rate in the June quarter.
- The underutilization rate increased from an 11-year low 10.0% to 10.4% in the 1st quarter, while down by 11.3% year-on-year.
- Seasonally adjusted, the employment rate rose from 67.3% to 67.5% in the 1st quarter, hovering close to its peak of 68.0%.
The Kiwi Dollar moved from $0.60626 to $0.60628 upon The Kiwi Dollar moved from $0.60626 to $0.60628 upon release of the figures. At the time of writing, the Kiwi Dollar was flat at $0.6052.
For the Aussie Dollar
Retail sales jumped by 8.5% in March, month-on-month, following a 0.5% rise in February. Economists had forecast an 8.2% surge.
According to the ABS,
- COVID-19 led to an unprecedented surge in demand for food (+24.1%), household goods (+9.1%), and other retailing (+16.6%).
- Social distancing led to a marked sales decline in cafes, restaurants, and takeaway food services (-22.9%).
- Discretionary spending in clothing, footwear, and personal accessory retailing (-22.6%), and department stores (-8.9%) were also weak.
- Records were broken in the month, with spending on food retailing seeing the largest rise on record. By contrast, the sales fall in cafes, restaurants, and takeaway food was the largest decline on record.
The Aussie Dollar moved from $0.64261 to $0.64307 upon release of the figures. At the time of writing, the Aussie Dollar was down by 0.03% to $0.6429.
AAt the time of writing, the japanese Yen was up by 0.23% to ¥106.33 against the U.S Dollar.t
The Day Ahead:
For the EUR
It’s a busy day ahead on the economic calendar. Following Monday’s dire manufacturing PMI numbers, Italy and Spain’s April Services PMIs are focused later this morning.
Finalized Service and Composite PMIs also are due out of France, Germany, and therefore the Eurozone.
From Germany and therefore the Eurozone, March factory orders and retail sales figures are due out but will likely have a muted impact on the EUR.
While we’ll expect the PMIs to be of influence, the continued easing of lockdown measures and fall in new cases remains EUR positive.
A V-Shaped economic recovery isn’t expected, however, which can still limit any upside for the EUR.
Expect market risk appetite to play a hand, however. Any chatter from Beijing or Washington will influence. there’s also the difficulty of a COVID-19 stimulus package to think about , with EU member states wanting to deliver.
At the time of writing, the EUR was down by 0.01% to $1.0839.
For the Pound
It’s a comparatively quiet day ahead on the economic calendar. April construction PMI figures are due out later today.
The PMI is forecasted to tumble from 39.3 to 22.2 in April, which might pressure the Pound.
Outside of the numbers, however, there are trade talks with the U.S, Brexit negotiations, and lockdown measures to think about .
A trade agreement with the U.S would definitely remove an outsized degree of uncertainty that has plagued the Pound.
At the time of writing, the Pound was up by 0.02% to $1.2437.
Across the Pond
It’s a comparatively quiet day ahead on the U.S economic calendar. April’s ADP employment change figures are due out later today.
While the markets are only too conscious of the surge in jobless claims through April, the headline figure will likely be alarming.
Expect the headline figure to affect risk appetite later within the day.
Outside of the numbers, chatter from Beijing and Washington will still influence.
The Dollar Spot Index was up by 0.08% to 99.790 at the time of writing.
For the Loonie
It’s a very quiet day on the economic calendar, with no material stats due out of Canada to supply direction.
A lack of stats will leave the Loonie within the hands of risk sentiment and therefore the weekly EIA petroleum inventory numbers.
At the time of writing, the Loonie was down by 0.04% to C$1.4055 against the U.S Dollar.