US durable goods orders overview
Monday's US economic docket highlights the release of Durable Goods Orders data for August. The US Census Bureau will publish the monthly report at 12:30 GMT and is expected to show that headline orders rose 0.7% during the reported month. Orders excluding transportation items, which tend to have a broader impact, are anticipated to have increased by 0.5% in August.
How could it affect EUR/USD?
As Joseph Trevisani, Senior Analyst at FXStreet explains: “According to Fed Chair Jerome Powell, the FOMC members are agreed that the economy has met the criteria for a reduction in bond purchases to begin. Yet, at the Wednesday meeting, the Fed chose caution rather than action. A strong August Durable Goods number, especially in business spending, will help to reassure the governors that the economy is in full recovery. Durable Goods will likely cast their vote for the taper, higher Treasury rates and a higher dollar.”
Meanwhile, Yohay Elam, FXStreet's own analyst, provided a brief technical outlook: “Euro/dollar is trading above 1.17 and benefiting from upside momentum on the four-hour chart, a positive development. On the other hand, the currency pair still trades below the 50, 100 and 200 Simple Moving Averages.”
Yohay also offered important technical levels to trade the major: “Some resistance awaits at 1.1725, the daily high. It is followed by 1.1745, a line that separated ranges. Further above, 1.1790 and 1.1830 are eyed. Support awaits at 1.17, a swing low from Friday. It is followed by 1.1680, the September low, and 1.1660.”
Key Notes
• US Durable Goods Orders August Preview: Retail Sales have led the way
• EUR/USD Forecast: Euro set to rise on calm from German elections, Evergrande, data eyed
• EUR/USD adds to recent losses and drops below 1.1700, looks to Lagarde
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.
