November US Durable Goods Orders Jump 5.3%
US durable goods orders rose to $323.8 billion in November, a 5.3% jump, according to the latest report. This figure is a sharp reversal from the previous month's 2.1% contraction.
While this appears to be a "fast" increase, the result was actually below market expectations, which projected a 0.5% increase—so the market considered this data strong, but still inconsistent with the narrative previously established by market participants.
Excluding the transportation component, new orders rose 0.5%. Excluding the defense component, new orders rose 6.6%. This means the increase is still quite broad, but the large surge remains the most dominant in certain sectors.
The main driver came from transportation equipment, which rose $15.3 billion, or 14.7%, to $119.3 billion. This sector has also strengthened in three of the last four months, so the recovery trend appears consistent.
Market reaction: Despite the positive data, the DXY remains under pressure, remaining stuck around the 97.00 area—a level last seen in late September. This indicates that the market is still focused on other factors (e.g., risk sentiment, the Fed's direction, and the yen's movements), so the economic data hasn't been enough to lift the dollar today.
Source: Newsmaker.id
