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)

Read also: “What is interesting about the US Fed meeting in April,
and how it can affect the world banks policy”

Hanzenko Anton

Earn with the help of the trade service on the news Erste News!

Topical articles of the trader’s blog:

1. Currency is a weapon in a trade war!
2. How far the prospects for USD/JPY may be downward
3. What does the US Fed Chairman Powell statement mean for the US dollar

Current Investment ideas:

1. Selling Alcoa shares makes a profit! Three reasons to connect now!
2. The trade war for Boeing: good or bad and how can we make money from it!
3. Buy Citigroup Inc. shares now and make a profit in early October!