News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Forex Update: As of 11:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: -0.03% 🇯🇵JPY: -0.04% 🇨🇭CHF: -0.09% 🇨🇦CAD: -0.18% 🇦🇺AUD: -0.30% 🇬🇧GBP: -0.33% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/zrfx5KPV5X
  • EU's Šefčovič: says Brexit talks are difficult but constructive $GBP
  • 🇫🇷 Unemployment Benefit Claims (OCT) Actual: -56.6K Previous: -15.2K https://www.dailyfx.com/economic-calendar#2020-11-25
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: France 40: -0.17% US 500: -0.18% Wall Street: -0.25% Germany 30: -0.36% FTSE 100: -0.40% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/arymbmpUKF
  • Heads Up:🇩🇪 Bundesbank Wuermeling Speech due at 11:15 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-11-25
  • As a trader do you know when the markets let you take a break? Find out when the stock markets are closed. Check out @DailyFX holiday calendar here. https://t.co/M3ndtjxrOd https://t.co/EZ7emLN3F6
  • Heads Up:🇫🇷 Unemployment Benefit Claims (OCT) due at 11:00 GMT (15min) Previous: -15.2K https://www.dailyfx.com/economic-calendar#2020-11-25
  • 🇿🇦 Business Confidence (Q4) Actual: 40 Previous: 24 https://www.dailyfx.com/economic-calendar#2020-11-25
  • Heads Up:🇿🇦 Business Confidence (Q4) due at 10:00 GMT (15min) Previous: 24 https://www.dailyfx.com/economic-calendar#2020-11-25
  • Traders tend to overcomplicate things when they’re starting out in the forex market. This fact is unfortunate but undeniably true. Simplify your trading strategy with these four indicators here:https://t.co/A4dqGMPylo https://t.co/0W1ajO9IiF
US ISM Manufacturing Remains Weak but Expansionary in April

US ISM Manufacturing Remains Weak but Expansionary in April

2013-05-01 14:40:00
Christopher Vecchio, CFA, Senior Strategist
Share:

THE TAKEAWAY: USD ISM Manufacturing (APR) > 50.7 versus 50.6 expected, from 51.3 > ISM Prices Paid (APR) > 50.0 versus 52.6 expected, from 54.5 > AUDUSD BEARISH

US_ISM_Manufacturing_Remains_Weak_but_Expansionary_in_April_body_Chart_2.png, US ISM Manufacturing Remains Weak but Expansionary in April

Source: Bloomberg –prepared by Christopher Vecchio

Manufacturing growth remained positive in the United States in April, but only barely, according to the recent report from the Institute of Supply Management. The ISM Manufacturing (APR) survey showed that the index increased further into expansion territory at 50.7 from 50.6 in March, bringing forth another piece of weak economic data about the US economy.

Overall, this is being viewed as a modestly strong print for the US Dollar, which had been under pressure the past several days following the soft US 1Q’13 GDP report on Friday. Economists’ forecasts had slid lower since Friday, with numerous forecasts calling for a print below 50.0, which would have signaled a contraction in the US manufacturing sector.

In terms of the subcomponents of the report, Prices Paid, an alternative gauge of inflation, dropped to 50.0 from 54.5, a sign that price pressures are relative stable at present time. Inventories fell to 46.5 from 49.5 last month, while the Employment subindex dropped from 54.2 to 50.2 in April. The slowdown seen in the overall report is consistent with slowdowns seen in other major data prints, and the recent ISM reading fits neatly in with the narrative of softer consumer spending, softer business spending, and of course softer government spending in the wake of the budget sequestration that began in March.

AUDUSD 1-minute Chart: May 1, 2013

US_ISM_Manufacturing_Remains_Weak_but_Expansionary_in_April_body_Picture_1.png, US ISM Manufacturing Remains Weak but Expansionary in April

Charts Created using Marketscopeprepared by Christopher Vecchio

Following the release, the AUDUSD initially rose from 1.0300 to 1.0313, but soon slid to fresh session lows at 1.0275 after the weak manufacturing report as well as the weak US construction spending report for April (implicitly, demand for base metals is weakening, hence a suffering commodity currency base). Similar US Dollar strength was observed in other major currency pairs, in particular the EURUSD, which had fallen from a session high of 1.3243 ahead of the release to as low as 1.3195, at the time this report was written.

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES