U.S. Dollar Gains As U.S. February Factory Orders Rise Less Than Expected
U.S. factory orders rebounded in February on the back of demand for new vehicles and business investment, rising by 1.3 percent after a revised 1.1 percent decline in January. Orders to U.S. factories have climbed in three of the past four months. The print falls slightly short of expectations, as the median forecast of 60 economists surveyed by Bloomberg News had called for a 1.5 percent increase. Orders excluding transportation equipment increased by 0.9 percent, the most in five months, after declining by 0.5 percent in January.
According to a report released by the U.S. Department of Commerce today, orders for capital goods excluding aircraft and military equipment, a measure of future business investment, rose by 1.7 percent after falling 3.4 percent the previous month. Shipments of capital goods, which are used in calculating gross domestic product (GDP), climbed by 1.4 percent after falling 2.8 percent in January. Meanwhile, booking for non-durable goods, including petroleum, rose by 0.4 percent, while a 1.3 percent increase in unfilled orders signaled a pickup in production.
AUDUSD 1-minute Chart: April 03, 2012
Chart created using Strategy Trader – Prepared by Tzu-Wen Chen
After an initial drop following the data release, the greenback rallied against higher-yielding currencies such as the Australian dollar and New Zealand dollar. The US dollar continued to advance as the weaker-than-expected data pared risk appetite and sent investors back towards the safe haven currency. At the time of this report, the greenback was trading 11 pips higher at $1.0369 against the Aussie.
--- Written by Tzu-Wen Chen DailyFX Research
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