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Jobless Claims Outweigh Weak Durable Goods Orders

Gregory Marks

Talking Points:

-US Durable Goods Orders for October met -2.0% estimates, prior revised higher from 3.7% to 4.1%

-Initial Jobless Claims came in at 316K, lower than the 330K forecasted while prior was revised higher by 3K

-Ex Transport figures for October missed 0.5% estimates coming in at -0.1%

Initial Jobless Claims came in better than expected Wednesday morning, but weak US Durable Goods Orders mitigated any USDollar release rally. The print met estimates of -2.0%, but Ex Transportation and Cap Goods Orders Nondef. came in much weaker than expected. In regards to October’s print, it is important to note that Caterpillar sales for October fell 12% vs. a 9% fall in September while massive Boeing orders from the Dubai Airshow will not be accounted for until the November print.

Jobless_Claims_Outweigh_Weak_Durable_Goods_Orders_body_Picture_3.png, Jobless Claims Outweigh Weak Durable Goods Orders

AUD/USD (5-Minute Chart)

Jobless_Claims_Outweigh_Weak_Durable_Goods_Orders_body_Picture_2.png, Jobless Claims Outweigh Weak Durable Goods Orders

Source: FXCM Marketscope

Despite weakened data, the USDollar continues to be supported with commodity bloc currencies selling off amid a resurgence of China worries. Expect weaker volume with the U.S. holiday on Thursday, but there are some key event risks for the rest of the week, most notably Japanese CPI.

Jobless_Claims_Outweigh_Weak_Durable_Goods_Orders_body_Picture_1.png, Jobless Claims Outweigh Weak Durable Goods Orders

Gregory Marks, DailyFX Research Team

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