Strong ISM mfg set the tone yesterday amid...>

DOLLAR: Strong ISM mfg set the tone yesterday amid the backdrop of firmer US Tsy

yields which saw the dollar extend gains across the board. This spilled over

into Asia with the DXY rallying to 97.39, before fading. The Mar 11 high

provides the next layer of resistance at 97.45, ahead of a run at the ytd high

at 97.71.

- Gold weighed by the firmer dollar theme touched pullback lows of $1285.42, but

has since recovered to the $1288.60/80 area. Bears target a break of the 100-dma

& Mar 7 low at $1281.92/1280.94, below here opens the long-term 38.2%

retracement level of the Aug 2018 - Feb 2019 rise at $1275.59.

- WTI trades $0.20 higher, with Brent $0.10 better off. This comes after risk-on

flows supported crude on Monday.

- US Durable Goods the main highlight today at 1230GMT. Durable goods orders in

the US are expected to fall by 1.5% in February after rising by 0.3% in January.

Boeing orders fell sharply in February, which should allow transportation orders

to pull back. Durable goods orders excluding transportation are expected to hold

steady after a 0.2% decline in January.