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The American dollar accelerated the growth on business activity in the non-manufacturing sector
- The volume of supplies of civilian means of production (excluding aircraft) (m/m), fact -0.6%, previous value -0.7%.
- Factory orders (m/m) (July), fact 1.4%, forecast 1.0%.
- ISM non-manufacturing sector employment index (Aug), fact 53.1, previous value 56.2.
- ISM non-Manufacturing PMI (ISI) (Aug), fact 56.4, forecast 54.0.
Business activity in the non-manufacturing sector (PMI) from ISM in the USA unexpectedly increased in August, causing a decrease in the risks of a recession in the USA after weak data on business activity in the manufacturing sector. This caused a moderate correction of the American dollar after the decline.
Fig. 1. ISM non-Manufacturing PMI Index in the USA
The US dollar index rebounded from the support level of 98.10-20 on the decline of risk, having received a support from an increase in the US government bonds yield. This serves as a signal for the formation of a corrective movement, which, in turn, will be limited by resistance levels: 98.50-60.
Fig. 2. The US dollar index chart. Current price – 98.30 (yield on 10-year US government bonds – blue line)
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Hanzenko Anton
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