Mostly good news from the US: durable goods orders beat with +3.4%. In addition, the previous figure was revised up from 1.3% to 1.9%. Core orders are up 0.4%, also this comes on top of an upwards revision for March, which now flips from a drop of -0.2% to a rise of 0.1%. Jobless claims join the party with 268K, better than expected as well.Â
One figure does ruin the party though: when excluding defense and air, there is actually a drop of 0.8% instead of +0.3% expected. This makes the picture more mixed for the greenback.
US durable goods orders were expected to rise by 0.5% in April after a gain of 1.3% in March (before revisions). Core orders, which are no less important, were predicted to advance 0.3% after a drop of 0.2% beforehand. Jobless claims, were expected to stand at 275K, similar to last week’s 278K.
The US dollar was stable ahead of the publication with the focus being on oil. WTI Crude Oil topped $50.
Core orders serve as a gauge for investment. Investment impacts the economy in the medium to long terms, the same horizon central banks look into. For the Fed, this is the first investment indicator for Q2.
Currency Reaction (updated)
The US dollar initially enjoyed a move to the upside, but the core-core figure balances things out.
- EUR/USD was trading around 1.1175, just under resistance at 1.1180. Further resistance is at 1.1250. Support awaits at 1.1130. See how to trade tomorrow’s US GDP with EUR/USD. The pair is trading around the same place after falling and then rising.
- GBP/USD flirted with the 1.47 level after the minor miss on GDP. Resistance is at 1.4780 and support at 1.4650. The battle continues.
- USD/JPY was hugging 110. Resistance awaits at 110.80 and support at 109.40. 110 remains in the limelight.
- USD/CAD was on the move to the downside thanks to the not-too-dovish BOC and the rise in oil prices. Strong support is at 1.2750 and resistance at 1.30. The pair rises just a bit.
- AUD/USD was around 0.7215, feeling the pressure from the weak capex number. Resistance is at 0.7220 and 0.73, support at 0.7175 and 0.7140.
- NZD/USD was around 0.6725 with support at 0.67 and resistance way up at 0.6840.
