A Quiet Economic Calendar Leaves Inflation and the Greenback in the Spotlight

Its a quiet day ahead on the economic calendar. Finalized inflation figures from German precede inflation figures from the U.S. Expect plenty of market reaction to the U.S numbers…

Earlier in the Day:

It was another relatively busy start to the day on the economic calendar this morning. The Aussie Dollar was in action, with economic data from the China also in focus.

For the Aussie Dollar

In November, the Westpac Consumer Confidence Index increased by 0.6% to 105.3, partially recovering from a 1.5% fall in October.

According to the latest Westpac Report,

• The lack of a major pickup in confidence came in spite of Sydney and Melbourne easing lockdown measures.

• Higher vaccination rates has continued to support consumer confidence, limiting a material decline in response to the last set of lockdown measures.

Looking at the sub-components:

• Family finances vs a year ago fell by 4.5% and was down by 1.9% year-on-year.

• By contrast, family finances next 12-months declined by a modest 0.7%.

• Economic conditions next 12-months rose by 3.3%, with conditions next 5-years up 2.6%.

• Time to buy a major household item increased by 1.8%, with the time to buy a dwelling up 9.4%.

• Also positive was an 11.1% slide in the Unemployment Expectations Index. Year-on-year, the index was down 24.9%.

The Aussie Dollar moved from $0.73718 to $0.73721 upon release of the figures. At the time of writing, the Aussie Dollar was down by 0.07% to $0.73712.

From China

Inflation was back in focus.

In October, Chinas annual rate of inflation accelerated from 0.7% to 1.5% versus a forecasted 1.4%.

Month-on-month, consumer prices increased by 0.7% following a 0.1% rise in September. Economists had forecast a 0.7% increase.

Wholesale inflationary pressures also accelerated. Chinas annual wholesale rate of inflation picked up from 10.7% to 13.5%. Economists had forecast an annual rate of 12.4%.

The Aussie Dollar moved from $0.73678 to $0.73730 upon release of the figures.

Elsewhere

At the time of writing, the Japanese Yen was flat at ¥112.870 against the U.S Dollar, with the Kiwi Dollar down by 0.07% to $0.7124.

The Day Ahead

For the EUR

Its a quiet day ahead on the economic calendar. Finalized October inflation figures for Germany will be in focus early in the session.

Barring a marked revision from prelim figures, however, we dont expect the numbers to have an impact on the EUR.

At the time of writing, the EUR was flat at $1.1593.

For the Pound

Its a quiet day ahead on the economic calendar. There are no major stats due out of the UK to provide the Pound with direction.

At the time of writing, the Pound was down by 0.04% to $1.3552.

Across the Pond

Its another relatively quiet day ahead on the economic calendar.

Inflation will draw plenty of attention, however. With the FED continuing to view inflationary pressures as transitory, another spike would test support for riskier assets and question whether the FED can stand pat on interest rates.

At the time of writing, the U.S Dollar Spot Index was up by 0.02% to 93.975.

For the Loonie

Its another quiet day ahead. There are no material stats due out of Canada to provide the Loonie with direction.

The lack of stats will leave the Loonie in the hands of crude oil inventories and market risk sentiment.

At the time of writing, the Loonie was up by 0.02% to C$1.2436 against the U.S Dollar.

For a look at all of todays economic events, check out our economic calendar.