US Durable goods orders surge in January

Feb 25, 1:47 pm
US durable goods

Today’s Economic events

  • Australia private new expenditure Q4 0.80% vs. -3.0%
  • Germany HICP m/m -1.0% vs. -0.90% previously; y/y 0.40% vs. 0.40% previously
  • Spain GDP q/q 0.80% vs. 0.80%; y/y 3.50% vs. 3.50%
  • UK Q4 GDP q/q 2nd estimates 0.50% vs. 0.50%; y/y 1.90% vs. 1.90%
  • Total business investment q/q -2.10% vs. 0.50%
  • UK Exports Q4 -0.10% vs. 0.50% imports Q4 1.20% vs. 1.40%
  • Eurozone CPI y/y 0.30% vs. 0.40%; m/m -1.40% vs. -1.40%
  • Eurozone core CPI y/y 1.00% vs. 1.00%
  • US Durable goods orders January’16 4.90% vs. 2.90%; Core durable goods 1.80% vs. 0.30%
  • Weekly jobless claims 272k vs. 270k

Coming up

  • US HPI m/m
  • Fed Williams speech
  • New Zealand trade balance and export data

Chart of the day – CADJPY

CADJPY - 25/02 (0.84% gain for the day)
CADJPY – 25/02 (82.5, 0.84% gain for the day)

The Asian markets were mixed as the Nikkei225 gained 1.41% while the Shanghai Composite was down -6.40%. The declines came about as some of the stocks fell sharply but the risk aversion was also further alleviated by concerns of PBoC setting a higher mid-point rate for the

Yuan this week sparking speculation that the PBoC could be looking at fixing the rates to strengthen the Chinese currency. In the Asian session, data from Australia showed the quarterly capital expenditure rising 0.80% for the fourth quarter, against expectations of a decline of -3.0%. AUDUSD opened today on a weak note as the Aussie fell to session lows of $0.7158 but managed to recoup its losses into the European session.

At the time of writing, AUDUSD is up 0.14% for the day, trading at $0.72. NZDUSD was considerably stronger, rising 0.39% for the day as the Kiwi reversed its losses since yesterday’s NY trading session. However, NZDUSD remains below Monday’s high near 0.67195.

The Yen was seen easing back since late yesterday after USDJPY touched lows of 111.2. The Greenback quickly rebounded and continued to trade higher. At the time of writing, USDJPY is up 0.31% for the day, trading at 112.5.

In Europe, Germany’s HICP fell -1.0% for the month as the Eurozone consumer inflation was weaker at 0.30% on the headline year over year. On a month on month basis, consumer prices fell -1.40% matching estimates. Core CPI on a year over year basis was at 1.0% as estimates. The Euro remained unchanged on the data as the single currency was seen posting a modest recovery after dropping to $1.096 yesterday. For the day, EURUSD is flat, trading at $1.1016.

The UK’s second estimates from the fourth quarter GDP released today did not surprise with the Q4 GDP being confirmed at 0.50%, while on a year over year, UK’s GDP was at 1.90%. Business investment, however, declined in the fourth quarter, falling -2.10%. Imports outstripped exports, rising 1.20% in the fourth quarter while exports declined -0.10%. The British Pound was muted to the data as the Cable hovers near 7-year lows. At the time of writing, GBPUSD is trading at 1.395, up 0.21% for the day.

European equity markets are trading in the green with the German DAX up 1.57%, and the London FTSE100 up 2.38%.

The NY trading session got underway with US Durable goods orders posting strong numbers. For the month, durable goods increased 4.90% on the headline and 1.80% on the core. Weekly jobless claims increased more than expected to 272k above estimates of 270k.

On the commodity front, Gold prices are up 0.58%. Prices briefly rallied to post session highs near $1240 but pulled back lower to currently trade at $1236 an ounce. Oil prices are down -1.83% today, trading at $31.63 a barrel currently.

The remainder of the evening will see a speech from Fed’s Williams and the US housing price index.

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John has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. John applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics.

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