Better than expected U.S. data
Christophe Chevalier August 24, 2020 2:25 AM
The Markit U.S. Manufacturing Purchasing Mangers' Index spiked to 53.6 in August (better than 52.0 expected).
The Markit U.S. Manufacturing Purchasing Mangers' Index (preliminary reading) spiked to 53.6 in August (better than 52.0 expected), and the Services PMI jumped to 54.8 (vs 51.0 expected). Also, Existing Home Sales surged to an annualized rate of 5.86 million units in July (vs 5.41 million expected). Later today, the Federal Reserve Bank of Chicago will post July National Activity Index (3.7 expected).
From a technical point of view, on a daily chart, Dollar Index is trading within a bearish channel, capped by its declining 50-day moving average (in blue). The daily RSI stands within its selling area. Readers may therefore consider the potential for further weakness as long as 94.80 is not broken to the upside. The nearest support would be set at previous overlap at 91.00. A second one would be set at horizontal support at 89.20.
Source: TradingView, GAIN Capital
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