It was a positive start to the day for riskier assets, with positive sentiment towards trade talks driving the majors. Economic data is in focus later today.
It was a busy day on the economic calendar through the Asian session this morning.
Economic data included October Service sector PMI numbers out of China and October BRC Retail Sales Monitor numbers out of the UK.
On the monetary policy front, the RBA also delivered its November interest rate decision and rate statement.
On the geopolitical risk front, chatter on trade provided support for riskier assets in the early part of the day.
Following talk of the U.S administration planning to issue licenses to U.S firms to sell to Huawei Technologies, there was also some chatter of pulling back on tariffs.
The Caixin Services PMI fell from 51.3 to 51.1 in October. Economists had forecast a rise to 52.8. Supported by a pickup in manufacturing sector activity, however, the composite PMI rose from 51.9 to 52.0, its highest level since April.
According to the October Survey,
The Aussie Dollar moved from $0.68794 to $0.68852 upon release of the figures, which preceded the RBA’s interest rate decision.
The RBA held rates unchanged at 0.75%, which was in line with market expectations.
According to the RBA Rate Statement,
The Aussie Dollar moved from $0.68864 to $0.68879 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.26% to $0.6902.
At the time of writing, the Japanese Yen was down by 0.21% to ¥108.81 against the U.S Dollar, while the Kiwi Dollar was up by 0.11% to $0.6409.
Risk-on sentiment through the session provided direction for the pair early on.
It’s a quiet day ahead on the economic calendar. There are no material stats due out of the Eurozone to provide direction for the EUR.
A lack of stats leaves the EUR in the hands of geopolitical risk and influence of corporate earnings on risk sentiment.
At the time of writing, the EUR was down by 0.04% to $1.1124.
It’s a relatively busy day ahead on the data front. October’s Services PMI and Composite PMIs are due out later this morning.
We can expect the Service PMI to have an impact on the Pound, with forecasts Pound positive.
Earlier in the day, the UK’s BRC Retail Sales Monitor rose by 0.1% in October, year-on-year, partially reversing a 1.7% slide from September.
At the time of writing, the Pound was up by 0.01% to $1.2885.
It’s a busy day ahead on the economic calendar. Key stats include September trade data, finalized Service Sector, and Composite PMI numbers and the markets preferred ISM Non-Manufacturing PMI.
We can expect the ISM Non-Manufacturing PMI to have the greatest influence on the day.
Barring dire numbers, we can expect the JOLTs job openings for September to have a muted impact following the nonfarm payroll figures. Quit rates would need to avoid a sizeable fall, however.
The Dollar Spot Index was up by 0.10% to 97.601 at the time of writing.
It’s another quiet day on the economic calendar. There are no material stats due out of Canada later today.
A lack of stats continues to leave the Loonie in the hands of market sentiment towards trade and influence on crude oil prices.
The Loonie was down by 0.03% to C$1.3155, against the U.S Dollar, at the time of writing.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.