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ISM falls more than forecast; Gold looking to recover

Summary:

  • ISM non-manufacturing PMI 56.8 vs 58.1 exp and 58.8 prior
  • Durable goods orders inline; Factory orders rise
  • Gold bounces from 1300 level

The latest batch of data from the US has shown some mixed results, with the overall feeling one of slight disappointment. Of the three releases at 3PM (BST) the most important was the ISM non-manufacturing PMI  which missed a forecast for 58.1 in coming in at 56.8, below the 58.8 seen previously. 

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ISM non-manufacturing PMI fell back in April with the reading of 56.8 one of the lowest in the last 9 months. Source: Bloomberg

Looking at the components of the ISM release, the new orders rose slightly (60.0 vs 59.5 prior) as did prices paid (61.8 vs 61.5 prior) but the employment figure is a potential cause for concern. The employment reading fell pretty sharply to 53.6, down from 56.6 previously and is in fact the lowest for this indicator in a year!

At the same time as the ISM number, the latest durable goods orders and factory orders figures were announced. The final durable good orders for March came in at 2.6%, the same as the preliminary reading. Factory orders were a positive with a m/m reading of +1.6% beating the expected +1.3% and also the prior +1.2%. 

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 Gold has enjoyed a pretty strong bounce today and the 1311.50 level could be an interesting one to look out for on tonight’s close. Source: xStation

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