Economic data from Germany and the United States put the euro and the dollar back in the spotlight


Early in the day:

The start of the day on the economic calendar was relatively busy this morning. The Australian dollar was in action at the start of the Asian session, with China’s economic data also taking center stage.

For the Australian dollar

The AIG manufacturing index fell from 51.2 to 50.4 in October.

According to the October survey,

  • The sector decelerated for a 4e consecutive month, with PMI falling to its lowest level since September 2020.

  • Four of the activity indices contracted in October, with declines in production, employment, exports and supplier deliveries.

  • However, futures orders have continued to grow at a strong pace, suggesting a likely recovery once COVID-19 restrictions are relaxed further.

The Australian dollar fell from $ 0.75148 to $ 0.75155 when the figures were released. At the time of writing, the Australian dollar has fallen 0.03% to $ 0.7516.

From china

The Caixin Manufacturing PMI fell from 50.0 to 50.6 in October.

According to the October survey,

  • Although modest, the rate of expansion was the strongest in 4 months.

  • Total new orders increased the most in 4 months.

  • However, domestic demand was the driving force behind new orders, with export orders declining by a 3rd consecutive month.

  • Production fell for a 3rd consecutive month, resulting in a further decline in employment.

  • Delays in the supply chain have become widespread, with prices for materials, energy and transportation rising again.

  • The input price inflation rate was the highest since December 2016.

  • As a result, production costs have also increased at a marked rate.

  • Manufacturers were generally optimistic, however, that production would increase over the next 12 months.

The Australian dollar fell from $ 0.75117 to $ 0.75150 when the figures were released.

Somewhere else

As of this writing, the Japanese Yen was down 0.19% to 114.170 against the US dollar, the Kiwi dollar up 0.04% to $ 0.7174.

The day to come

For the euro

It’s a relatively calm day ahead on the economic calendar. German retail sales figures for September will be the focus of concern later this morning.

With consumer prices on an upward trend, today’s numbers will influence as markets look to see the impact of inflation on consumption.

At the time of this writing, the Euro was down 0.02% to $ 1.1556.

For the pound

It’s a relatively calm day ahead on the economic calendar. October’s finalized manufacturing PMI will be updated later today.

While there is interest in any revisions, market sentiment towards the BoE’s monetary policy decision will remain critical.

At the time of this writing, the pound was down 0.01% to $ 1.3681.

Across the pond

The ISM manufacturing PMI figures for October are expected to come out of the United States later today. While the overall figure will influence, sub-components will also attract interest, with pressure on costs and key new orders.

The finalized manufacturing PMIs from the Markit survey are also expected, but should have a moderate impact on the dollar.

At the time of this writing, the US Dollar Spot Index was up 0.04% to 94.161.

For the loonie

It is a particularly calm day ahead, with no major statistics expected outside Canada.

The lack of statistics will leave the loonie in the hands of market risk sentiment and crude oil prices.

China’s private sector PMIs to set the tone ahead of US PMI numbers

At the time of this writing, the loonie was up 0.05% to C $ 1.2382 against the US dollar.

For an overview of all of today’s economic events, check out our economic calendar.

This article originally appeared on FX Empire

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