• US S&P Manufacturing PMI edged lower to 51.5 in August.
• US Dollar Index continues to stretch higher toward 109.50.

The business activity in the US manufacturing sector expanded at a softer pace in August than it did in July with the S&P Manufacturing PMI falling to 51.5 from 52.2. This print came in slightly higher than the flash estimate and the market expectation of 51.3.

Commenting on the data, "US factory production was down for a second month running in August, with demand for goods having now fallen for three straight months amid the ongoing impact of soaring inflation, supply constraints, rising interest rates and growing economic uncertainty about the economic outlook," Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said.

Market reaction

The US Dollar Index preserves its bullish momentum after this data and was last seen gaining 0.65% on a daily basis at 109.39.