According to the preliminary report published by Markit Economics, the U.S. service sector has shown rather weak growth in August 2016. The key reason for this slowdown is a slower pace at which hew orders and new jobs has grown.
It is also interesting to note that this is the weakest monthly growth seen over the last 6 months. When adjusted for seasonality, the U.S. Service PMI dropped from 51.4 points in July 2016 all the way down to 50.9 points in August 2016, Masterforex-V Academy report.
However, it should be noted that the Service PMI has been above level 50 for the last 6 months despite the fact that this time the index has reached its February value.
At the same time, the negative dynamics seen in the service sector resumed the downtrend in the amount of new jobs created over the reporting period. The pace of income growth also slowed down to the lowest level since late 2014.
Forex
Masterforex-V Academy reports that the U.S. Dollar has been trading against a basket of other majors within the scope of the 100,60 - 91,88 range for more than 12 months.
Tobe more specific, there is an upward movement building inside the range. For now, this is wave A/B of level Daily. The closest major level of resistance is 97,62, while the closest major levels of support are 94,05 and 93,03. If the price breaks below those support levels, the price will resume the longer-term downtrend.
