AUD ran to session lows of 0.7781 against....>

AUSSIE: AUD ran to session lows of 0.7781 against the USD in the wake of softer

than expected Chinese Manufacturing PMI data, although the move was modest, and

has mostly unwound.

- China attributed the soft readings to the LNY holiday, however, the

manufacturing print was particularly poor even when accounting for this.

- The immediate event risk for the AUD is tomorrow's CapEx release, followed by

next week's RBA decision, speech from RBA Gov. Lowe & GDP data.

- From a technical perspective last week's break of $0.7867 shifted initial

focus to 0.7779 where the 200-DMA is located although follow through has been

lacking. Bears continue to look for a close below $0.7729 to end bullish hopes

and shift focus to $0.7500 Dec lows. Bulls still need a close above the 21-DMA

at 0.7893 to ease bearish pressure.