FOREX NEWS: USDJPY Rally Continues Following Strong Durable Goods
Thursday brings about another strong print for the US economy. The September Durable Goods Orders report, a measure of consumption for products with life spans of three years or greater, showed that orders grew by +9.9% month-over-month, well-above the +7.5% m/m clip forecasted by Bloomberg News. The August figure was revised marginally higher to -13.1% m/m from -13.2% m/m.
The big issue with the data, however, was the Capital Goods Orders (Non-Defense excluding Aircraft) subcomponent, which came in a 0.0% m/m after a modest +0.2% m/m gain in August (revised from +1.1% m/m). By and large, this subcomponent is considered a strong proxy for future business investment; the print suggests that concerns over the fiscal cliff are becoming more tangible into the end of the year.
USDJPY 1-minute Chart: October 25, 2012
Charts Created using Marketscope – Prepared by Christopher Vecchio
Following the release, the USDJPY traded higher from 80.16 to as high as 80.23.
More US data is due out throughout the morning – get up-to-the-minute news at the DailyFX Real Time News feed.
--- Written by Christopher Vecchio, Currency Analyst
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