Save US Service minus Manufacture vs. DXY Index
Manufacturing output reflects oversea demand; service output reflects domestic demand. The difference between the two industries shows a correlation with the US dollar.
We use "ISM NMI" to represent service and "ISM PMI's new orders" for manufacture. When the difference widens, service expands faster than manufacture.
The US economy relies on consumption and service output, while the emerging market is driven by manufacturing production. So when service outgrows manufacture, investment shifts to the US, causing US dollar to strengthen. When manufacture outgrows service, investment outflows the US.
Blue bar grows -> USD appreciates
Blue bar declines -> USD depreciates
US Service minus Manufacture(L)0.00
US Dollar Index(R)2022-01-1995.75