Shipments of manufactured durable goods lowered 0.4% or $0.89 billion in February to $206.6 billion after increasing the previous two months, including January’s with a 0.1% increase. Manufactured goods’ inventories increased 0.4% to $373.7 billion, which is the highest level since numbers began being published. Capital goods orders, excluding defense, rose 1.5% to $81.8 billion.
In other news, US crude oil refineries averaged a bit below 14.5 million barrels a day in the week ending March 23rd, 88,000 more a day from the previous week. Consequently, oil prices fell to near $106 per barrel, indicating demand continues to be weak. Additionally, consumption could remain lower as gasoline prices reach approximately $4.00 per gallon.
The EURUSD dropped on negative sentiment from Wall Street after the release of the disappointing durable goods order report. The pair fell below support at 1.3300 briefly but looks to be consolidating as we near the end of the U.S. session. If this level holds, we expect the EURUSD to trade in a range between 1.3300 and 1.3360.
Eugene Ross, Analyst
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