US durable goods orders have been flat since March and that was one of the reasons the US dollar was the laggard on Wednesday. The kiwi and pound sterling where the top performers. Australian capex is due later as the US bows out of the week for holidays. Today's 2 Premium Trades are driven by a developing Head-&-shoulder formation in the 10 and 2-year yield spreads between two particular nations. this is leading us to issue 2 new shorts as highlighted by the 3 charts in today's Premium Insights.
Thanksgiving meant several US data points were squeezed in Wednesday. The most notable was durable goods orders; excluding air and defense, orders fell 1.3% compared to a 1.0% rise expected. The average over the past seven months has been close to flat – something that's at odds with the US recovery narrative.