THE TAKEAWAY: USD Factory Orders (MAY) > +2.1% versus +2.0% expected, from +1.3% (revised higher from +1.0%) (m/m) > Raises Outlook for US Stabilization> USDCAD NUETRAL
US Factory Orders for the month of May showed an upward revision, with the monthly figure increasing to 2.1% following a 1.3% (revised) advance the month prior. This upward tick beat the Bloomberg News median forecast of 2.0%, with the headline coming in at its highest level since February 2013.
This upturn in Factory Orders provides a more comprehensive view of the US manufacturing sector, revealing a slight increase in demand for capital equipment across major industries. Yet, factory inventories remained unchanged in May, despite a 0.1% increase the month prior, suggesting that manufacturers are experiencing difficulty boosting stockpiles in the face of increasing demand.
USDCAD 1-Minute Chart: July 2, 2013
Following the release, the USDCAD remained relatively stable declining roughly -11-pips to 1.0542. Currently, the pair seems to be consolidating around the 1.0542 handle as it remains downward trending from early this morning.
-- Written by Jonathan DePaols, DailyFX Research
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