Quiet day on economic calendar leaves COVID-19 and geopolitics center stage

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According to preliminary figures, industrial production jumped 8% in July, after rising 1.9% in June. Economists had forecast an increase of 5.8%.Retail sales fell 2.8%, partially reversing a 3.9% increase from June, according to the Ministry of Economy, Trade and Industry. Economists had forecast a decline of 1.7%.

The Japanese yen fell from ¥ 105.512 to ¥ 105.334 when the numbers were released. At the time of writing, the Japanese yen was down 0.17% ¥ 105.55 against the US dollar.

Outside of China

NBS’s private sector PMIs for August were the focus at the start of the day.

The manufacturing PMI fell from 51.1 to 51.0, while the non-manufacturing PMI fell from 54.2 to 55.2.

The Australian dollar rose from $ 0.73559 to $ 0.73520 when the figures were released.

For the kiwi dollar

The ANZ Business Confidence Index fell from -31.8% to -42.4% in August. In July, the index had fallen from -34.4% to -31.8%.

According to the latest ANZ report,

  • The own activity indicator also fell by 8 points to -17%
  • A net 15% of companies also expect to reduce their investments, with a net 32% expecting lower profits.
  • Capacity utilization was positive, increasing by 5 points to -3%.
  • Short-term employment intentions fell 6 points to 21% net of companies planning to cut jobs.

The Kiwi dollar fell from $ 0.67371 to $ 0.67333 when the figures were released. At the time of writing, the Kiwi Dollar was down 0.07% to $ 0.6738.

For the Australian dollar

Business gross operating profits and private sector credit numbers were central concerns.

In the 2nd quarter, the company’s gross operating profits jumped 15%. In the 1st quarter, profits were up 1.1%. Economists had forecast a drop of 7.5%.

In July, credit to the private sector fell 0.1% in July, following a 0.2% drop in June.

According to the RBA,

  • Home loans rose another 0.2%, after rising 0.2% in June.
  • Personal credit, however, fell 1.8%, down 0.8% in June.
  • Credit to businesses fell 0.6%, following a 0.8% drop in June.

The Australian dollar rose from $ 0.73538 to $ 0.73592 when the numbers were released. At the time of writing, the Australian dollar was up 0.04% to $ 0.7368.

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