USD Breaking News: Dollar Finds Support After Strong Durable Goods Release
U.S. DOLLAR TALKING POINTS
- U.S. Durable Goods Orders (May) –ACT: 0.7%, EST: 0%; CORE – ACT: 0.7%, EST: 0.3%
- Positives for U.S. economy and greenback.
Durable goods orders are used as a barometer for the U.S. economy by measuring industrial activity. This economic indicator represents new order data from U.S. manufacturers for higher value goods that are said to last over three years. Increasing durable goods numbers are often thought of as positives for the U.S. economy and thus the dollar by way of investors’ confidence.
For the month of May, durable goods have exceeded estimates on both total and core metrics showing increased support in the U.S. after two consecutive declining issues.
U.S. DURABLE GOODS ORDERS (MAY):
Source: DailyFX economic calendar
U.S. DOLLAR INDEX DAILY CHART
Chart prepared by Warren Venketas, IG
Post-announcement, the DXY was bid finding sustenance from bulls and overshadowing the recent recessionary talk in the U.S.. Price action is currently testing resistance at the 50-day EMA (purple) while the days long lower wick may point to impending upside near-term.
Trade Smarter - Sign up for the DailyFX Newsletter
Receive timely and compelling market commentary from the DailyFX team
Contact and follow Warren on Twitter: @WVenketas
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.