Today’s key data is being released by the UK, EU, US and Australia and with all, bar the US, enjoying relative stability in recent trade, todays data will either confirm their current equilibriums or set new values for each respective currencies relative to each other.
From the EU, we have host of PMI releases for both the Manufacturing and Services sectors. The PMI data is based off of the surveying of purchasing managers for the respective sectors and indexing their views of the current and future outlook of their respective sectors. PMI`s are regarded as a leading indicator of economic health and a better than expected release will see the EUR benefit as its demand increase while worse than expected figures will see the EUR weaken as markets dump the single unit currency.
The UK is anticipating the release of the Public Sector Net Borrowing figure, which seeks to measure the difference between spending and income of public corporations. With the figure expected to show a deficit of 6.7B, a lower than expected number would see the GBP strengthen as market price in the lower than expected deficit while a higher than expected number would lead to a weakening of the pound as markets price in the larger deficit.
The USD has suffered in recent trade as we see participants begin jumping ship on the dollar after President Trump announced that the USD was overvalued. Today’s data, might ease some of these fears and see the USD claw back some its losses. The data comes in the form of the Existing Home sales figure, which is expected at 5.54M. A better than expected release will see the USD strengthen as markets price in the expected boom in the economy while a worse than expected release will see the USD continue to slide as it breaks below the 100 support level on the US index.
The days’ finale comes in the form of the Australian CPI q/q figure which is hotly anticipated as AUD traders look for some momentum. The figure is expected at 0.7%, and will represent the change in prices of a basket of goods and service purchased by consumers. A better than expected release will imply that the Australian economy is heating up and thus lead to an appreciation of the AUD while a worse than expected release will show the economy to be cooling off which would discourage buyers and have seller take the reins.