Earlier in the Day:
It was a quieter start to the day on the economic calendar this morning. The Aussie Dollar was in action this morning.
For the Aussie Dollar
Year-on-year, the economy grew by 1.1% in Q1, after having contracted by 1.0% in the 4th quarter. Economists had forecast growth of 0.6%.
In the 1st quarter, the economy expanded by 1.8%, quarter-on-quarter, coming in ahead of a forecasted 1.5%. In the 4th quarter, the economy had expanded by 3.1%.
According to the ABS,
Private investment rose 5.3%, contributing 0.9 percentage points to growth. A marked increase in machinery and equipment investment, supported by improving business confidence and government tax incentives drove investment northwards.
Dwelling investment increased for a 3rd quarter in a row, up by 6.4%.
Household spending increased by 1.2%, adding 0.7 percentage points to growth. As a result of the easing of COVID-19 restrictions, spending on services rose by 2.4%.
The household saving to income ratio fell marginally but still remained high at 11.6%.
The Aussie Dollar moved from $0.77635 to $0.77729 upon release of the figures. At the time of writing, the was Aussie Dollar was up by 0.17% to $0.7767.
At the time of writing, the Japanese Yen was down by 0.10% to ¥109.59 against the U.S Dollar, while the Kiwi Dollar was up by 0.10% to $0.7264.
The Day Ahead
For the EUR
It’s a relatively quiet day ahead on the economic data front. German retail sales figures for April are due out later this morning.
Following a large increase in March, the markets will be looking for another jump to support the economic recovery.
On the monetary policy front, ECB President Lagarde is also scheduled to speak late in the day.
At the time of writing, the EUR was up by 0.09% to $1.2224.
For the Pound
It’s a quiet day ahead on the economic calendar. There are no material stats from the UK to provide the Pound with direction.
While market optimism towards the UK economic outlook continues to provide support, COVID-19 news updates will influence.
News of new strains of the coronavirus weighed on the Pound early in the week.
At the time of writing, the Pound was up by 0.06% to $1.4158.
Across the Pond
It’s a particularly quiet day ahead on the calendar, with no material stats to provide the Doller with direction.
The lack of stats will leave FOMC member chatter and any news updates from Capitol Hill to influence.
At the time of writing, the Dollar Spot Index was up by 0.04% to 89.866.
For the Loonie
It’s a relatively quiet day ahead on the economic data front. Building permit figures for April are due out later today.
The numbers should have a limited impact on the Loonie, however, with crude oil inventories in focus.
Market optimism towards the economic outlook and upward trend in crude oil prices continue to paint a positive outlook for the Loonie.
At the time of writing, the Loonie was up by 0.10% to C$1.2059 against the U.S Dollar.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire