US durable goods orders overview
Tuesday's US economic docket highlights the release of durable goods orders data for September. The US Census Bureau will publish the monthly report at 12:30 GMT. The headline orders are expected to rise by 0.5% during the reported month, matching the previous month's reading. Core durable goods orders, which exclude transportation items and tend to have a broader impact than the volatile headline figures, are forecast to increase by 0.4% in September as against the 0.6% previous. Non-defence capital goods orders (excluding aircraft and parts) - seen as a proxy for business investment - are anticipated to grow by 0.2% versus August's 0.9% gain.
How could it affect EUR/USD?
Given that the recent price action has been exclusively sponsored by developments surrounding the coronavirus saga and the US fiscal stimulus headlines, the data is unlikely to provide any meaningful impetus. As Joseph Trevisani, Senior Analyst at FXStreet explains: “For the markets, the Durable Goods numbers are old news, their economic information is contained in the Retail Sales figures from almost two weeks ago. No impact should be expected on the dollar, equities, gold or Treasuries.”
Meanwhile, FXStreet's own Analyst, Yohay Elam offered a brief technical outlook and important levels to trade the major: “Euro/dollar has broken below the uptrend support line that has been accompanying it since last week but is so far holding above the 50 Simple Moving Average on the four-hour chart, as well as the 100 and 200 SMAs. Critical support awaits at 1.1785, which was a low point late last week. It is followed by 1.1760, the low point where the uptrend support line was formed, and then by 1.1720. Resistance awaits at the daily high at 1.1835, followed by 1.1865 and 1.1880.”
Key Notes
• US Durable Goods Orders Preview: Will the part reflect the retail whole?
• EUR/USD Forecast: Only a dead cat bounce? Covid, election uncertainty and data push lower
• EUR/USD challenges weekly lows around 1.1800
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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