US durable goods orders weaker than expected

Published date: 24/05/2019

In another sign that the US economy is indeed coming off the boil, durable goods orders have fallen by 2.1% - a little lower than the 2.0% drop forecast.  Orders ex defence and ex air were down 0.9% vs -0.3% with the core durable goods orders flat on the month against a small rise of 0.2% expected.  

Adding to the soft report are negative revisions for March, making the April figures all the more concerning. 

The USD has weakened as a result and leading the way is EUR/USD which is pushing for 1.1200+ again, though as we saw earlier on, we faced strong resistance here this morning, while 1.1220 is also a notable sticking point. 

USD/JPY is also backtesting the support at 109.50 we highlighted at the start of the week, though losses seen yesterday were in line with losses seen in both stocks and Treasury yields and both are holding steady for now.  As such, we wait for the cash open in just under an hour. 

Other pairs see Cable back under 1.2700 after failing ahead of 1.2720-25, while USD/CAD is holding the mid 1.3400's for now. AUD has made some modest gains against the USD this morning but has been outpaced by NZD which is up nearly 70 ticks since yesterday and may see a little more of a push if risk sentiment is stable this afternoon.


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