US durable goods orders overview
Tuesday's US economic docket highlights the release of durable goods orders data for December. The US Census Bureau is scheduled to release the monthly report at 13:30 GMT and consensus estimates point to a 0.5% rise during the reported month as compared to November's awful reading of -2.1%.
Meanwhile, core durable goods orders, which exclude transportation items and tend to have a broader impact than the volatile headline figures, are anticipated to register a modest growth of 0.2% in December as against a 0.1% decline recorded in the previous month. On the other hand, non-defence capital goods orders (excluding aircraft and parts) - a proxy for business investment - are forecasted to rise by 0.5% as compared to November's growth of 0.7%.
How could it affect EUR/USD?
As FXStreet's Senior Analyst, Joseph Trevisani explains: “With all of the world’s major central bank on a sustained policy hold the relative strength of their currencies depends on economic comparison. For the US dollar the better the performance of the economy the better for the greenback.”
Meanwhile, FXStreet Editor Pablo Piovano offered a brief technical outlook and important levels to trade the EUR/USD pair: “The ongoing leg lower in EUR/USD appears to have met some contention in the 1.10 neighbourhood for the time being. However, if the selling impetus regains steam, then the 1.0980 region – where is located November’s low – should return to the traders’ radar. In the broader picture, as long as the 55-day SMA - today at 1.1089 - caps the upside, the bearish stance on the spot is seen unchanged.”
“Although not favoured in the short-term view, if bulls regain the upper hand, interim resistance is seen at the 100-day SMA at 1.1068. This area of resistance is reinforced by the proximity of the 3-month resistance line. Something to keep in mind: the RSI is close to the oversold territory, while the ADX at around 15, shows the current downtrend lacks (proper?) strength,” Pablo added further.
Key Notes
• US Durable Goods Orders Preview for December: Positive patience
• EUR/USD Forecast: The 1.10 area is seen holding the downside
• EUR/USD Price Analysis: A breach of 1.10 exposes a test of 1.0980
About US durable goods orders
The Durable Goods Orders, released by the US Census Bureau, measures the cost of orders received by manufacturers for durable goods, which means goods planned to last for three years or more, such as motor vehicles and appliances. As those durable products often involve large investments they are sensitive to the US economic situation. The final figure shows the state of US production activity. Generally speaking, a high reading is bullish for the USD.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD recovers above 0.6750 after Australian jobs data
AUD/USD picks up a late bid and recovers above 0.6750 in Asian trading on Thursday, following the release of mixed Australian employment data. The extended post-Fed US Dollar recovery, amid a cautious market mood, could limit the pair's upside ahead of US data.
USD.JPY jumps toward 144.00 on the road to recovery
USD/JPY gains traction and approaches 144.00 in Thursday's Asian session. The uptick of the pair is bolstered by the impressive US Dollar recovery. Investors shift their attention to the US data and the Bank of Japan interest rate decision on Friday.
Gold price remains on the defensive amid the post-FOMC USD recovery from YTD low
Gold price struggles to lure buyers despite the Fed’s jumbo interest rate cut on Wednesday. A further recovery in the US bond yields underpins the USD and caps the non-yielding metal. Concerns about an economic slowdown, along with geopolitical risks, help limit the downside.
Ethereum attempts recovery following first rate cut in four years
Ethereum is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds recorded $15.1 million in outflows.
Australian Unemployment Rate expected to hold steady at 4.2% in August
The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.