In This Article:
Earlier in the Day:
It was a relatively busy day on the economic calendar through the Asian session this morning.
The Japanese Yen, Kiwi Dollar and Aussie Dollar were in action in the early part of the day.
Retail sales figures out of Japan, business confidence figures from NZ and capital expenditure figures out of Australia provided direction early on in the day.
On the geopolitical front, while optimism over trade remained, news of Trump signing the HK Bill to protect protestor rights hit the wires in the early part of the day.
For the Japanese Yen
According to the Ministry of Economy, Trade, and Industry, retail sales slid by 7.1%, year-on-year, in October, partially reversing a 9.1% jump in September. Economists had forecast a fall of 3.8%.
The Japanese Yen moved from ¥109.333 to ¥109.413 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.13% to ¥109.40 against the U.S Dollar.
For the Kiwi Dollar
Business confidence improved in November, with the ANZ Business Confidence Index rising from -42.4 to a current year high -26.4. Economists had forecast a rise to -30.8.
According to the latest ANZ Report,
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All activity indicators rose, with both headline business confidence and own activity seeing double-digit increases to current year highs.
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Support came from the Agriculture and Retail sectors.
Looking at the numbers:
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Profit expectations rose by 16 points to a net 5% expecting lower profitability.
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Export intentions increased by 1 point to +1%.
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Employment intentions increased by 12 points to a net 3% of firms intending to increase hiring.
The Kiwi Dollar moved from $0.64128 to $0.64266 upon release of the figures. At the time of writing, the Kiwi Dollar was up by 0.06% to $0.6423, with support coming from the improved business confidence figures.
For the Aussie Dollar
Private new capital expenditure fell by 0.2% in the 3rd quarter, quarter-on-quarter, following on from a 0.6% decline in the 2nd quarter. Economists had forecast a 0.1% decline.
According to the ABS,
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While expenditure on buildings and structures rose by 2.7%, expenditure on equipment, plant, and machinery fell by 3.5%…
The Aussie Dollar moved from $0.67721 to $0.67702 upon release of the figures. At the time of writing, the Aussie Dollar down by 0.15% to $0.6766.
The Day Ahead:
For the EUR
It’s a relatively quiet day ahead on the economic calendar. Key stats include prelim November inflation figures out of Spain and Germany and Eurozone consumer confidence figures.
A pickup in inflationary pressure would provide some support for the EUR over the course of the day. Barring a major upswing, however, any moves in the EUR would likely be short-lived.