- The Australian dollar rebounded as a downbeat reading on Chinese manufacturing and talk of rate cuts in the United States stoked speculation of an imminent RBA policy easing.
- China's official Purchasing Managers' Index (PMI) fell to 35.7 from 50.0 in January.
- The Aussie was trading 0.8 percent up at 0.6554, having hit a low of 0.6433 on Friday, its lowest since March 2009.
- Technical indicators are bullish on hourly charts: RSI strong at 60, Stochs are at overbought levels and MACD supports upside.
- Immediate resistance is located at 0.6578 (7-EMA), a break above could take it near 0.6590 (50% retracement of 0.6750 and 0.6433)
- On the downside, support is seen at 0.6448, a break below could drag it till 0.6424.
Recommendation: Good to buy on dips around 0.6468, with stop loss of 0.6448 and target price of 0.6578.
