US dollar nosedives as the economic releases in the US misses the mark.
In the US, the Durable Goods Orders, released by the US Census Bureau registered a decline of 1.4% in February 2015, whereas the market was expecting it to increase by 0.4%.
US MBA Mortgage Applications released by the Mortgage Bankers Association registered an increase of 9.5% whereas the last reading was a decline of 3.9%.
Pairs like NZDUSD and AUDUSD spiked higher to challenge recent highs.
US durable goods orders (US Dollar)
US MBA mortgage approvals (US Dollar)
US Durable Goods Orders
Earlier during the NY session, the Durable Goods Orders representing the cost of orders received by manufacturers for durable goods and means goods planned to last for three years or more released by the US Census Bureau. The market was expecting it to increase by 0.4% in February 2015. However, the outcome was on the lower side, as the US Durable Goods Orders declined by 1.4%.
Furthermore, the US Durable Goods Orders ex Transportation also posted a decline of 0.4% in February 2015 whereas the market was expecting it to increase by 0.3%. The report stated that the new orders for manufactured durable goods decrease was a lot lower compared to January’s 2% increase, and down three of the last four months. Moreover, the transportation equipment also declined by around 3.5% or $2.5 billion to $69.5 billion.
In addition, the unfilled orders for manufactured durable goods also declined by around 0.5% or $5.6 billion to $1,156.9 billion in February, which was a lot lower when compared to the preceding month’s increase of 0.3%.
US MBA Mortgage Approvals
There was one more release lined up, as the US MBA Mortgage Applications representing various mortgage applications and also a leading indicator of the U.S Housing Market was released by the Mortgage Bankers Association. It registered an increase of 9.5% whereas the last reading was a decline of 3.9%.
Overall, the data was discouraging and weighed further on the US dollar. Almost all major pairs were seen trading higher. The USDJPY pair was seen trading around the recent lows of 119.20.
The Futures for the Dow Jones Industrial Average was a little weaker after the economic releases in the US and was trading down towards the 19,940 level, and the S&P 500 index was also down by more than 4 points to trade near 2,087.
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