US: Factory Orders rise by 1.6% in May vs. 0.5% expected

• Factory Orders in the US increased at a stronger pace than expected in May.
• The greenback continues to outperform its rivals after the data.

The data published by the US Census Bureau revealed on Tuesday that new orders for manufactured goods, Factory Orders, rose by 1.6%, or $8.4 billion to $543 billion in May. This print followed April's increase of 0.7% and came in much better than the market expectation for a growth of 0.5%.

"Inventories, up twenty-one of the last twenty-two months, increased $10.0 billion or 1.3%, to $797.9 billion," the publication further read. "This followed a 0.8% April increase. The inventories-to-shipments ratio was 1.47, unchanged from April."

Market reaction

The US Dollar Index extended its impressive rally in the early American session and was last seen trading at its highest level since December 2002 at 106.60, rising 1.4% on a daily basis.