US durable goods orders overview
Wednesday's US economic docket highlights the release of durable goods orders data for July. The US Census Bureau will publish the monthly report at 12:30 GMT. The headline orders are expected to increase by 4.3% during the reported month as compared to the previous month's upwardly revised reading of 7.6%. Core durable goods orders, which exclude transportation items and tend to have a broader impact than the volatile headline figures, are seen rising by 2% as against 3.6% previous. Non-defence capital goods orders (excluding aircraft and parts) - seen as a proxy for business investment - are forecasted to climb 1.9%% versing June 3.4% gain.
How could it affect EUR/USD?
A weaker reading will further add to growing market worries about the US economic recovery. This, in turn, might prompt some fresh selling around the US dollar and assist the pair to gain some positive traction. Conversely, the market reaction to surprisingly stronger-than-expected figures is more likely to be limited as the focus remains firmly on the Fed Chair Jerome Powell's speech on Thursday during the Jackson Hole Symposium. Nevertheless, the data might still provide some impetus and assist traders to grab some short-term opportunities.
Meanwhile, Yohay Elam FXStreet's own Analyst provided some important technical levels to trade the EUR/USD major: "Immediate support is at 1.18, followed by 1.1750, which was a swing low last week. The round 1.17 level remains a significant cushion after holding EUR/USD several times in August."
"Above 1.1850, the next level to watch is 1.1915, the peak in early August. It is followed y 1.1965, the recent two-year high," Yohay added further."
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.
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