Decline in US Factory Orders Proves Less Drastic than Expected
- Factory orders post biggest decline in five months
- Release follows yesterday’s ISM Manufacturing disappointment
- USD/CAD fails to react to better than expected release
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US factory orders posted the biggest decline in five months in December. New manufacturing orders fell 1.5% from November, which was better than expectations for a 1.8% decline but down the revised 1.5% gain in the prior month.
The US Dollar is trading with extra sensitivity to economic releases since the FOMC mentioned an improvement in economic growth with the release of its decision to continue with a second 10 billion dollar taper in January. That was why the dollar declined yesterday with the release of worse than expected ISM Manufacturing.
However, today’s factory orders release was not far enough above expectations to send the greenback higher. The US Dollar continued to trade lower against its Canadian counterpart in Tuesday’s trading, and a weekly low at 1.1041 may continue to provide support for USD/CAD.
USD/CAD 1-Minute: February 4, 2014
Chart created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to email@example.com .
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.