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Earlier in the Day:

The economic calendar was on the busier side through the Asian session this morning. Economic data included August business confidence figures out of New Zealand and 2^nd quarter New CAPEX numbers out of Australia.

Outside of the numbers, the Asian market reacted further the Wednesday’s U.S Treasury yield curve inversion to levels last seen back in 2007.

For the Kiwi Dollar

The ANZ Business Confidence index fell from -44.3 to -52.3 in August, the lowest level since April 2008.

According to the latest ANZ Survey,

• Firms’ expectations for their own activity over the year ahead, fell by 6 points to -1, its lowest level since April 2009.

• Employment intentions fell by 3 points to -9, a net 9% of firms intending to reduce employment.

• Investment intentions fell by 4 points to -4, while profit expectations fell by 4 points to a net 20% of firms expecting profits to decline. That’s the worst reading since mid-2009.

• A net 41% of firms expect it to be tough to get credit.

• Inflation expectations fell from 1.8% to 1.7%, its lowest since late 2016.

• Export intentions fell by 2 points to -1, a net 1% of firms expecting exports to fall.

The Kiwi Dollar moved from $0.63380 to $0.63228 upon release of the figures. At the time of writing, the Kiwi Dollar was down by 0.43% to $0.6310.

For the Aussie Dollar

Private new capital expenditures fell by 0.5%, quarter-on-quarter, in the 2^nd quarter, following a 1.7% fall from the 1^st quarter. Economists had forecast a 0.5% rise.

According to the ABS,

• Spending on buildings and structures fell by 3.3%, while spending on equipment, plant, and machinery rose by 2.5%.

The Aussie Dollar moved from $0.67358 to $0.67281 upon release of the figures. At the time of writing, the Aussie Dollar was down by 0.12% to $0.6726.

Elsewhere

At the time of writing, the Japanese Yen was up by 0.24% to ¥105.87 against the U.S Dollar, with risk aversion driving providing support.

The Day Ahead:

For the EUR

It’s a busier day ahead on the economic calendar. Ahead of the European open, consumer spending and 2^nd quarter GDP are due out of France.

Later this morning, Germany’s August unemployment change figures and unemployment rate are due out.

We expect consumer spending and unemployment change figures to have the greatest influence on the EUR.

Also of influence are prelim inflation figures out of Spain and Germany.

Outside of the stats, geopolitics will continue to provide direction through the day coupled with sentiment towards the economic outlook.

At the time of writing, the EUR was up by 0.05% to $1.1083. News of Italy avoiding a snap general election provided support early on.