Earlier in the Day:
It was a particularly busy start to the day on the economic calendar this morning. While the Aussie Dollar was in action, economic data from China was the key driver early on. Later this morning, economic data from Japan will also be in focus.
For the Aussie Dollar
Employment rose by 29.1k in June, following a 115.2k jump in May. Economists had forecast a 25k increase in the month.
Full employment jumped by a further 51.6k, following a 97.5k increase in May. Economists had forecast a more modest 35.0k rise.
As a result, the unemployment rate fell from 5.1 percent to 4.9 percent in June.
According to the ABS,
The unemployment rate was 0.4 percentage points below March 2020 and at its lowest since December 2020.
In June, the number of unemployed fell by 22,000 to 679,000, which sits around 325,000 below a peak 1 million reached in July 2020.
While the unemployment rate declined to sub-5 percent levels, the participation rate held steady at 66.2 percent in the month. This was just below its historical high 66.3 percent in March 2021.
On the downside, the rate of underutilization increased by 0.3 percentage points to 12.8 percent. The underutilization rate increased for the first time since September 2020.
The Australian dollar rose from $0.74707 to $0.74701 on the announcement of the results, which came ahead of Chinese data. The Australian Dollar was down 0.16 percent to $0.74641 at the time of writing.
Originating in China
Retail sales increased by 12.1 percent year over year in June, compared to an anticipated 11.1 percent increase. Sales increased by 12.4 percent in May.
Year-on-year, industrial production increased by 8.3 percent, compared to an expected 8.0 percent increase. Production increased by 8.8 percent in May.
The second-quarter GDP figures, on the other hand, were more noteworthy.
The Chinese economy grew by 1.3 percent in the third quarter, falling short of the anticipated 1.4 percent. The GDP grew by 0.6 percent in the first quarter.
The economy grew by 7.9% year over year, which was lower than the 18.3 percent increase seen in the first quarter. Economists predicted an increase of 8.3 percent.
Following the announcement of the numbers, the Australian dollar rose from $0.74635 to $0.74644.
The Yen (Japanese yen) is a currency in Japan
The May results for the tertiary industry will be released later today. However, we don’t anticipate any Yen sensitivity in the numbers.
The Japanese yen was up 0.01 percent against the US dollar at JPY109.960 at the time of writing.
Elsewhere
The New Zealand dollar was down 0.41 percent to $0.70040 at the time of writing.
The Day to Come
In terms of the Euro
On the economic data front, it’s going to be a rather quiet day. Italy’s finalized June inflation data are expected later this morning.
However, we do not expect the figures to have a significant influence on the EUR.
The EUR was down 0.09 percent to $1.1826 at the time of writing.
Pound for Pound
The economic calendar has another busy day ahead of it, with UK employment numbers expected out later this morning.
Claimant counts for June and the unemployment rate for May will be closely watched.
The Pound was down 0.25 percent at $1.3825 at the time of writing.
Across the Water
On the economic calendar, today is a busy day. The manufacturing sector data from New York State and Philadelphia, as well as the weekly jobless claims figures, are set to be released.
Industrial production numbers will be released later in the day. Expect the jobless claims figures to be crucial in terms of economic data.
On the monetary policy front, FED Chair Powell gives his second day of evidence, which will be closely watched.
The Dollar Spot Index was up 0.06 percent to 92.466 at the time of writing.
The Loonie is a currency used in Canada.
On the economic data front, today will be a bit calmer. The ADP employment change numbers are expected to be released later today.
With nothing else to think about after the Bank of Canada’s policy decision on Wednesday, expect Loonie sensitivity to the figures.
Aside from the economic calendar, COVID-19 news will need to be kept an eye on.
The Loonie was down 0.23 percent against the US Dollar at the time of writing, trading at C$1.2538.
Check out our economic calendar for a complete list of today’s economic events./n
