The May US durables data were almost as disappointing as the April figures. US durable orders declined another 1.3% in May after falling a revised -2.8% in April (was -2.1%). Weakness was in transportation orders, which dropped 4.6% following the prior 7.6% plunge (revised from -5.9%). Much of the rest of the report was better than expected. Excluding transportation, orders rebounded 0.3% from -0.1% (revised from unchanged). On a positive note, non-defense capital goods orders excluding aircraft edged up 0.4% from -1.0% (revised from -0.9%). Shipments increased 0.4% from -1.6%. Non-defense capital goods shipments ex-aircraft rose 0.7% from a 0.4% gain (revised form unchanged). Inventories increased 0.5% from 0.4%. The inventory-shipment ratio was steady at 1.67.
US Advance goods trade deficit widened to -$74.5 bln in May versus -$70.9 bln (revised from -$72.1 bln). Goods imports increased 3.7% to $214.7 bln, with exports up 3.0% to $140.2 bln. The increases were likely a function of the increase in tariffs on China which went into effect on June 1. May Advance retail inventories increased 0.4% after a 0.6% increase (revised from 0.5%). Wholesale inventories were up 0.4% following the April 0.9% gain (revised form 0.8%).
Overall the data is likely to have little impact as attention is on geopolitics and the upcoming G20 and Trump-Xi meeting. The USD was little changed following the weaker durable orders and trade balance data, with the USD holding gains for the day with EURUSD down at 1.1315 and USDJPY capped by R1 Resistance at 107.75 and a 100 pip move from yesterdays 5 month low.
Click here to access the Economic Calendar
Head Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.