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On the economic calendar this morning, it was again another pretty busy start to the day. The Australian Dollar was active this morning, with Chinese trade statistics also in the spotlight.
The Australian Dollar
The NAB Business Confidence Index dropped 9 points to +11 points in June. Economists had predicted a smaller drop to 19. In May, the index dropped 3 points to +20 index points.
Business Confidence at the NAB: Rising new COVID-19 cases in NSW, as well as following lockdowns in NSW and other states, negatively on business sentiment, according to the June Survey.
Business conditions also deteriorated in June, decreasing from +36 to +24.
Taking a closer look at the sub-components:
The employment sub-index declined from +25 to +17, while the profitability sub-index fell from +39 to +25.
Exports also decreased in June, falling from +1 to -1.
The Australian dollar rose from $0.74858 to $0.74885 on the announcement of the results, which came ahead of Chinese trade data. The Australian Dollar was up 0.33 percent to $0.7501 at the time of writing.
Following last week’s concerns about the global economic recovery’s viability, trade figures from China received a lot of attention this morning.
China’s USD trade surplus extended in June, rising from $45.54 billion to $51.53 billion. Imports increased by 36.7 percent year on year, compared to an anticipated increase of 32 percent. Imports increased by 51.1 percent in May.
Exports climbed by 32.2 percent year over year, compared to a predicted rise of 24 percent. Exports had increased by 27.9% in May.
Following the announcement of the numbers, the Australian dollar rose from $0.75003 to $0.75016.
Elsewhere
The Japanese yen was up 0.02 percent to JPY110.350 against the US dollar at the time of writing, while the New Zealand dollar was up 0.34 percent to $0.7005.
The Day to Come
In terms of the Euro
On the economic data front, it’ll be a rather quiet day. France and Germany are expected to release their June inflation statistics later this morning.
The statistics will most likely have a minor influence on the EUR unless there is a significant upward revision.
Softer inflationary pressure would further postpone any monetary policy actions by the ECB after the ECB’s modification to its price stability target.
COVID-19 news updates will need to be monitored in addition to the economic calendar.
The EUR was up 0.08 percent at $1.1870 at the time of writing.
Pound for Pound
On the economic calendar, today is going to be a particularly quiet day. There are no substantial statistics expected from the UK to provide direction to the Pound.
Due to the paucity of statistics, the Pound will be at the mercy of market risk sentiment during the day, with COVID-19 once again being a major focus. Plans by the government to completely reopen the UK economy should help the Pound.
The Pound was up 0.14 percent at $1.3903 at the time of writing.
Across the Water
The June inflation data will be released later today. The FED’s perspective on inflation and the upswing being transitory would be called into doubt if inflationary pressures rose further.
The Dollar Spot Index was trading at 92.403 at the time of writing, down 0.02 percent.
On the economic data front, it’s going to be another quiet day. There are no material stats available to guide the Loonie.
The markets will certainly assess the further expansion of the Delta strain and its influence on certain key economies and crude demand when the BoC meets tomorrow.
The Loonie was up 0.06 percent against the US Dollar at the time of writing, trading at C$1.2446.
Check out our economic calendar for a complete list of today’s economic happenings./n
