!!!Drop in German Factory Orders Points of economic Contraction Possible

5 June 2012 08: 51 GMT the takeaway: German factory orders decline of 1.9% in the month of April-> several indicators of possible contraction-> Euro cancels the previous session gains
Reference to a possible reversal to an economic contraction, commands dragged German plant-1.9% in the course of April, well below the expectations of analysts for a - 1.1% decline. From the month of April 2011, factory orders were down 3.8% and March it had arrested were revised and more for an increase of 3.2%, according to the Ministry of economy in Berlin.
Factory orders from other countries of the euro area dropped 1.8% in April, while orders from non - EU countries fell by 4.7%. During this time, domestic orders were up by 0.4%.
Earlier today, composite outcome of German Index of purchasing managers of May is the lowest 34 months and indicates a contraction of the German production. The decline suggests that anxiety over the European debt crisis is now pressure on the German economy, and GDP T2 could come down.
It is said that G7 leaders are meeting today to discuss ways to improve the European economy and to help the Greece to avoid output of the single currency. German Prime Minister Angela Merkel said so far that it does support joint Government in euro bonds.

The EUR/USD appeared to ignore the worst decline expected in the commands of the plant, as the slightly higher fixed pair follows a giant lower 1.2450 earlier in the session. Feelings of risk are down after the Spanish Minister of the Budget of the negative comments on a rescue plan and the rumours that the G7 leaders will participate in a conference call.
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5 June 2012 08: 51 GMT

~~$ Dollar rises against commodity currencies as March Factory Orders fall

02 May 2012 14: 29 GMT  THE TAKEAWAY: [U.S. factory orders fall in March] > [Despite cooling in factory orders, stronger April ISM manufacturing figure indicates slump may be short-lived] > [USD gains vs.] [AUD]Orders to U.S. factories fell in March for the second month in the last three, due largely to a pullback in demand for aircraft. Bookings declined by 1.5 percent in March, while February's figure was revised downwards to a 1.1 percent rise from its initial reading of 1.3 percent. The median forecast of 61 economists polled in a Bloomberg News survey had called for a 1.6 percent decline.
According to a report released by the U.S. Department of Commerce today, orders for capital goods excluding aircraft and military equipment, a measure of future business investment, fell by 9.9 percent after rising 1.8 percent the previous month. Shipments of capital goods, which are used in calculating gross domestic product (GDP), climbed by 2.6 percent after rising by 1.5 percent in February. Meanwhile, demand for down goods, including petroleum, rose by 0.5 percent for a second month, while a 0.4 percent increase in unfilled orders signaled a pickup in production.
The factory orders report follows yesterday's release of the ISM Manufacturing Index for April, which showed that manufacturing in the U.S. probably expanded at the fastest pace in almost a year. Despite last month's drop in factory orders, the ISM figure indicates that the slump may be short-lived.
AUDUSD 1-minute Chart: May 2, 2012

Chart created using Strategy Trader - Prepared by Tzu - Wen Chen
Following the data release, the greenback strengthened against the higher-yielding currencies such as the Australian, Canadian and New Zealand dollars. The US dollar advanced as much as 16 pips against the Aussie in the first few minutes as the slump in factory orders pared risk appetite and sent investors back towards the safe haven currency. At the time of this report, the greenback was trading at $1.0289 against the Aussie.