Greenback Reversal

The greenback is weaker in Asia on Monday morning, which has helped AUD/USD to regain some lost ground. The pair last trades up 48 pips at 0.7754.

• Data earlier in the session sowed Markit manufacturing PMI for February confirmed at 56.9 in the final reading, AiG performance of manufacturing index rose to 58.5 from 55.3, while CoreLogi house price index rose 2.0% from a 0.7% rise in January.
• From a technical perspective the two-day sell-off in the pair at the tail-end of the week was sizeable, with prices shedding over 250 pips from the Thursday multi-year high. The pullback pierced through the 20-day EMA and found scant support at the 50-DMA at 0.7715. To recover toward the recent cycle highs, bulls need to pull back above the 0.80 mark to build towards double top resistance at 0.8136. For now, RSI measures have eased off overbought conditions, which could see a re-initiation of longs.