The ISM Manufacturing PMI report showed a decline below 50.0 in August. Analysts had anticipated an increase up to 50.0 (i.e. the index was expected to suspend the decline). For reference, figures above 50.0 suggest growth.
Therefore, the US replenished the list of developed economies with production decline seen for a couple of months.
In the meantime, China’s PMI report for august came out worse than expected as well, thus showing the biggest slowdown since early 2009.
However, somehow American consumers grew more confident in August. This factor is expected to help the domestic production recover a little.
For reference, the manufacturing sector accounts for 12% of the US economy.
The chart below, courtesy of , reflects the current state of affairs in the market of the USD index. The price is still fluctuating within the 81,80-80,96 price range created by wave 5/а(С) of level H4. On breaking below 80,96, the index will resume the downtrend. The current bearish move will be completed as soon as the price overcomes the top of the MF sloping channel and consolidates above 81,75 (as shown below).
