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US factory orders contract but beat forecasts

Summary:

  • US factory orders M/M: -0.1% vs -0.3% exp
  • Prior reading M/M revised higher to 1.7% from 1.4% previously   
  • USD on the rise after Senate pass tax reform

The only economic data of note from the US this afternoon has come in better than expected with factory orders for October beating forecasts. A M/M reading of -0.1% was above the consensus forecast according to Bloomberg of -0.3% but still marks the 1st decline in the last 3 releases. 

The decline is in part due to the month-on-month nature of the data, with the prior reading of 1.4% already being the second highest of the year before it was subject to an upwards revision leaving it now at 1.7%. 

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 The USD was already higher before the release following the positive tax news over the weekend and the buck has received another boost with the better than expected data. Source: xStation

 The USD has attempted to recover some of its recent declines today, boosted by the Senate vote on the GOP tax bill. The USD index (USDIDX on xStation) has moved off its recent lows around 92.55 and now sits back in between the 8 and 21 period EMAs on D1. 94.05 could be seen as offering possible resistance. 

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 The USDIDX is on the rise today and attempting to bounce after being in a downtrend for the last month. Source: xStation

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