AUD/USD trims losses as USD retreats

AUD/USD bottomed during the European session at 0.7648, then it tested the lows but held above 0.7650 and following the release of US economic data it moved to the upside, trimming losses. 

The pair climbed to 0.7672 and currently is trading at 0.7665/60, down 20 pips for the day. 

The flash estimate of February's Manufacturing PMI showed a reading of 54.3, below the 55.3 expected and lower than the previous month of 55.0; the services index also came below expectations (53.9 vs 55.8). The US dollar lost strength in the market after the report. 

Earlier, the minutes from the latest RBA monetary policy meeting were released and showed that the central bank was ready to lower rates if needed. That weakened the aussie. 

Technical levels

To the upside, resistance levels might be seen at 0.7670/75 (American session high), 0.7690 (daily high) and 0.7730/35 (Feb 16 high) . On the flip side, support could be located at 0.7645/50 (daily low) followed by the strong 0.7600/10 zone.