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On the economic calendar this morning, it was a relatively busy start to the day. The Australian Dollar and the Japanese Yen were in play, with Chinese economic data also in the spotlight.
The Yen (Japanese yen) is a currency in Japan
In the early hours of the morning, the finalized service sector PMI statistics were released.
The Services PMI increased from 46.2 to 48.0 in June, up from a preliminary 47.2.
According to the June Survey, measures imposed to combat the spread of COVID-19 resulted in additional contractions in activity and incoming business.
However, since May, both rates of decline have slowed.
The rate of decline in new export orders was the slowest since January 2020.
Firms were upbeat, with the level of optimism reaching a new high since March.
When the data was released, the Japanese yen changed from JPY111.165 to JPY111.160. The Japanese yen stayed unchanged versus the US dollar at JPY111.050 at the time of writing.
The Australian Dollar
This morning, the focus was on building approvals and retail sales.
Following a 5.7 percent drop in April, building approvals fell by 7.1 percent in May. Economists predicted a 5.5 percent drop.
More importantly, retail sales increased by 0.4 percent in May, compared to a preliminary 0.1 percent increase.
Food retailing increased by 1.1 percent, owing to a 1.9 percent gain in supermarket and grocery store sales, according to the ABS.
Cafes, restaurants, and takeaway food services had a 0.7 percent gain in sales last month, while department store sales increased as well.
Retailing of household items declined by 1.1 percent, while apparel, footwear, and personal accessories remained steady.
When compared to May 2020, retail sales grew by 7.7%.
Following the announcement of the results that came before China’s data, the Australian dollar jumped from $0.75184 to $0.75168. The Australian Dollar was down 0.07 percent to $0.7521 at the time of writing.
Originating in China
This morning’s focus was on the services sector.
The Caixin Services PMI dropped from 55.0 to 50.3 in June, which was worse than the expected drop to 55.0.
Demand was pushed down by a rise in COVID-19 cases and reduced travel, according to the June Survey.
Both new orders and business activity increased at the weakest rate in 14 months.
In June, operating costs increased just marginally, but prices charged declined for the first time since July 2020.
For the first time in four months, employment levels in the industry declined.
Following the announcement of the numbers, the Australian dollar rose from $0.75168 to $0.75185.
Elsewhere
The New Zealand Dollar was down 0.01 percent to $0.7025 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 busy day. The early half of the European day will be dominated by service sector PMIs for Italy and Spain.
PMIs from France, Germany, and the Eurozone that have been finalized will also be examined. Expect Italy, Spain, and the Eurozone’s PMIs to be the main drivers, barring significant revisions from preliminary readings.
The EUR was down 0.04 percent to $1.1860 at the time of writing.
Pound for Pound
On the economic calendar, today is a calm day. Later today, June’s finalized service PMI will provide direction.
Expect any adjustments to have an impact on the UK government’s efforts to control the Delta variant’s spread.
Aside from the economic calendar, information on any government efforts to alleviate the lockdown will be helpful.
The Pound was up 0.04 percent at $1.3829 at the time of writing.
Across the Water
With the US markets closed today, there were no statistics expected from the US.
The Dollar Spot Index was up 0.10 percent to 92.320 at the time of writing.
The Loonie is a currency used in Canada.
On the economic data front, it’s going to be a rather quiet day. There are no material stats available to guide the Loonie. Due to a paucity of data, the Loonie will be at the mercy of market risk sentiment on any given day.
The Loonie was down 0.10 percent to C$1.2334 against the US Dollar at the time of writing.
Check out our economic calendar for a complete list of today’s economic happenings./n
