8 December, AtoZForex.com, Lagos – The day has already commenced with interesting economic releases from Australia and China. China failed to keep up its increasing month on month impressive three month positive trade balance run, with the latest figure coming below forecast and previous at 343B.
Australia’s business confidence on the other hand showed encouraging resilience in the non-mining sector recovery, as business conditions hold-up at well above average levels according to the National Australia Bank business survey. However, the Aussie fell in early trading hours, likely due to the disappointing China trade balance figure, being a foremost trading partner of the world’s second largest economy.
UK Manufacturing Production m/m (9:30 A.M GMT)
The change in the total inflation-adjusted value of output produced by manufacturers is forecast to come in at -0.1%. Last month’s report showed manufacturing, the largest component of production, was estimated to have decreased by 0.4% between Q2 and Q3. However, when comparing September 2015 to August 2015, manufacturing is estimated to have increased by 0.8%, the largest monthly rise since April 2014. On aggregate, the pound fell against the USD yesterday. The sterling is currently trading mixed against its major counterparts. The manufacturing data could give it a clearer direction.
Canada Building Permits m/m (1:30 P.M GMT)
For the past three months, the change in the total value of new building permits issued has been negative. For this month, it is forecast for a rebound as we near the year end. This data is closely watched because it is an excellent gauge of future construction activity, considering that obtaining a permit is among the first steps in constructing a new building. The CAD has continued its fall as the currency is being dragged down by the oil breakdown.
As the Bank of Canada Governor Stephen Poloz speaks later today, it is also expected to move the Canadian dollar if he drops any interesting monetary policy hints to support the country, as the falling oil prices continues to weigh on economic conditions. However, it will take some positive news for oil or a very upbeat data to reverse the trend on the CAD at the moment.
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