Before discussing about the relationship between US Core Durable Goods Order, let’s understand what is durable goods are. Durable goods are the goods that do not wear out quickly or have a lifespan of more than three years, and include a wide range of items including computer equipment and industry machinery, trains, planes and automobiles.
However, transportation equipment is specifically excluded from core durable goods order because high value of aircraft and other transportation equipment since an influx of large orders in one month can skew the monthly numbers and make it difficult to ascertain the underlying trend.
One of the special features of US Core Durable Goods Orders is the indicator not only reflect the current economic health, but also the future economic condition for the coming few months. This is because the durable goods are goods that do not wear out quickly as mentioned earlier, higher orders indicate increase manufacturing activity in the near future or it can be understood as indication of how busy the factories may be in the future. It is a strong indicator for US Dollars.
In simple words,
Higher value than expected — bullish for US Dollars
Lower value than expected — bearish for US Dollars
US Core Durable Goods Orders is reported monthly towards the end of the month as the change in the total value of new core durable goods orders (%). It can be tracked on Investing.com (US Core Durable Goods Orders).