Factory Orders Drop by 1.5% - 2.5.2012

Factory orders data decline 1.5 per cent in March, a bit higher than the market consensus forecast of a decline at 1.6 per cent, as the Department of Commerce reported at 10am eastern time. In February the Factory orders were revised higher to 1.1 per cent, therefore there was a drop in the pace of the factory orders at 2.6 per cent from February to March. The negative manufacturing data were expected as the Durable Goods Order data indicated the previous week that the manufacturing sector is showing signs of slowing activity, in March.

The greenback is holding the gains against its major rivals that created in the last trading sessions. Investors risk appetite is decreased because of negative data from EU, however due to mixed news in the U.S the US dollar is fighting to keep gains. The Australian dollar against the greenback fell to a weekly low at the 1.0286 level, the direction of the currency pair appears negative on the hourly chart. Up to now, on Wednesday, the aussie fell by 65 points or by 0.6 per cent. A bullish trader on the US dollar today is most probably enjoying profits by now.