- The headline US durable goods orders fell 1.1% in October.
- Core durable goods orders also fall short of market estimates.
- Pence’s speech on China eyed for some meaningful impetus.
The AUD/USD pair held on to its weaker tone around the 0.6840-35 region and moved little following the disappointing release of US durable goods orders data.
Data released this Thursday showed that the headline durable goods orders declined more-than-expected, by 1.1% in October as compared to 0.8% fall expected and the previous month’s modest growth of 0.3% (revised up from 0.2% reported earlier).
Disappointing US data does little to influence
Adding to this, the core durable goods orders, which excludes transportation items, also fell short of consensus estimates and dropped 0.3% during the reported month, reversing a downwardly revised growth of 0.3% (0.5% reported previously) recorded in August.
The market reaction, however, turned out to be rather muted as the data did little to alter expectations that the Fed will cut interest rates again at its upcoming monetary policy meeting on October 29-30 and hence, did little to provide any meaningful impetus.
It will now be interesting to see if the pair is able to find any meaningful traction or continues with its downbeat trading action as investors now look forward to the US Vice President Mike Pence’s speech on China, which might influence sentiment surrounding the China-proxy Australian Dollar.
Technical levels to watch
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