The Durable Goods Orders report, an influential economic indicator of the state of the economy’s health is set to be issued tomorrow 25 July 2013. Analysts note that this report which measures the purchase of bigger ticket hardware items such as cars, electronics and others will be closely watched by observers looking to understand the current levels of consumer confidence.
Some experts have already stated that they believe that the figures in this report are likely to decline, possibly due to recent housing numbers which have brought a glimmer of doubt on the rebounding American economy.
Analysts assess that should the Durable Goods Orders report in fact show negative results, it may have an effect on the value of the USD in trading, further lowering currency which has recently suffered dismal numbers.
Unexpected Chinese Manufacturing Report Hits AUD and NZD
Following a strong four day run, the two neighboring currencies were struck by a report out of China that showed lower than expected figures for manufacturing. Despite the fall, experts remain confident that neither currency is likely to decline too heavily. That said, that AUD was the target of significant short selling over the course of the past week with a massive rise in the number of hedges against it.
Analysts note that this is the second time this month that the Aussie has felt the repercussions from the massive Chinese economy, albeit the last time held positive news that helped to boost that Aussie based on expected figures on growth.
Analysts advise caution in trading the AUD due to the rapid rise in short selling going on at this time. As for the NZD, analysts believe that it will likely recover quickly, thus pushing up its value in currency pairings.
CAD Enjoys Boost From Retail Sales
In an unexpected turn of events, the Canadian dollar shot up following a report on Retail Sales issued yesterday 23 July 2013. The report showed significantly higher figures that have indicated to many that perhaps the Canadian economy is progressing faster than previously expected.
The news comes after a string of losses for the CAD over concerns of rapid growth numbers coming out of the US, along with fears that the economy was failing to rebound as many had previously hoped.
Analysts believe that the CAD will likely ride this high, making continued gains against the faltering USD, which has suffered a series of losses in recent days, thus making the CAD more desirable for traders at this time.