Lowest Since Early Feb

Gains in the greenback saw AUD/USD extend its losing streak, the pair has come under further pressure so far in Asia, the making fresh lows at 0.7599 – the lowest level since February 5. CBA notes the pair could face additional headwinds from dividend payments. "AUD could face additional selling pressures today from dividend payouts. FMG, the largest dividend payer in Australia, will pay $A4.5bn of dividends in AUD today. Some foreign owners may sell their AUD in exchange for foreign currency."

• Earlier in the session data showed activity had risen IHS Markit Flash PMI data for March saw manufacturing rise to 57.0 from 56.9, while services rose to 56.2 from 53.7. Pollyanna De Lima, Economics Associate Director at IHS Markit, said: "Private sector companies benefited from strong gains in new work during March, which prompted them to lift output and continue with their hiring efforts. In particular, there were notable accelerations in growth rates for new orders and business activity across the service sector."
• From a technical perspective AUD/USD is weaker Tuesday. The pair found resistance last week at 0.7849, Mar 18 high This level marks an important short-term bull trigger where a break is required to resume the recent bullish cycle and suggest scope for an extension higher. This would open 0.7860, a Fibonacci retracement and beyond. Key support at 0.7691, Mar 9 low, gave way, indicating a resumption of the downleg that started on Feb 25.
• Markets look ahead to ABS preliminary February merchandise trade data at 0030GMT/1230AEDT, while RBA's Debelle and Bullock will appear in front of a Parliamentary Committee at 0900GMT/2000AEDT.