In This Article:
Earlier in the Day:
It was a relatively busy economic calendar through the Asian session this morning. Economic data included 2nd quarter GDP numbers out of Japan and July home loan figures out of Australia.
From the weekend, trade figures out of China failed to impress. China’s USD trade surplus narrowed from $44.58bn to $34.84bn in August. Exports fell by 1%, following a 3.3% rise in July. Economists had forecast a 2% increase. Imports fell by 5.6%, which was better than a forecasted 6% fall. In July, imports had also fallen by 5.6%.
In spite of the disappointing stats out of China, it was risk-on through the session, with the markets finding support from news of China stimulus.
The Asian markets also responded to a FED Chair Powell speech on Friday. While holding back from actually declaring a rate cut, the FED Chair insinuated support for the economy, which was considered to be a green light for a rate cut.
For the Japanese Yen
According to 2nd estimate figures released by Japan’s cabinet office, the economy grew by 1.3% in the 2nd quarter, year-on-year, revised down from 1.8%. Economists had forecast a 1.3% growth. The economy had grown by 2.2% in the 1st quarter.
Quarter-on-quarter, the economy grew by 0.3%, slowing from 0.6% in the 1st quarter. Economists had forecast the economy to grow by 0.3%, following the 1st estimate of 0.4%.
The Japanese Yen moved from ¥106.958 to ¥106.911 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.07% to ¥106.85 against the U.S Dollar.
For the Aussie Dollar
Home loans jumped by 5% in July, reversing a 0.9% fall in June, according to the ABS.
The Aussie Dollar moved from $0.68447 to $0.68477 upon release of the figures. At the time of writing, the Aussie Dollar was flat at $0.6846
Elsewhere
At the time of writing, the Kiwi Dollar was up by 0.12% to $0.6429. PBoC stimulus supported the Kiwi early on. There are no material stats due out until tomorrow to trouble the Kiwi Dollar.
The Day Ahead:
For the EUR
It’s another relatively quiet day ahead on the economic calendar. German trade data for July will provide the EUR with direction ahead of the European open.
Outside of the numbers, geopolitics will continue to garner plenty of attention as British PM Johnson looks to force a snap general election.
Any updates from the U.S or China on trade would also need monitoring throughout the day.
With the ECB expected to deliver on Thursday, the EUR may struggle to hold onto $1.10 levels early on the week.
At the time of writing, the EUR was down by 0.03% to $1.1026.