The US Fed Richmond Manufacturing Index came in at 8, which was better than the -7 figure that economists had predicted and was also 14 points higher than the previous figure. This piece of data which is released by the Federal Reserve Bank of Richmond, is one of the manufacturing surveys conducted by the Fed’s regional reserve banks in the United States.
The stellar performance of the US Fed Richmond Manufacturing Index can be attributed to growth witness in all three components measured by the survey: employment, new orders and shipments.
Improved local conditions for business and a rise in order backlogs helped boost manufacturing. There was more employment and wages grew in the time period measured by the survey. However, challenges still remain in finding skilled workers who were qualified to be matched into vacant positions.
Today’s data, which was released 5 minutes later than the scheduled time, tends to have a muted impact because of the timing of its release; coming later than other similar regional manufacturing indicators.
The report helped the US Dollar Index to stay above 97.00 and cling on to gains made for the day.
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US Dollar Index Outlook
The US Dollar Index continues to find support at the 97.16 area after breaking below the rising wedge and completing the measured move. The US Dollar Index will continue to draw momentum from US-China trade headlines, which have driven most of the manufacturing numbers in the US in the last two quarters.
It is currently at 97.48 and seems set for more upside as President Trump has indicated that the signing of the 1st phase of the deal that emanated from the recent US-China trade talks could happen at the APEC meeting in Chile. The Chinese have also indicated that the talks were positive and a favourable outcome was reached.