AUD/USD: minor recovery ahead of key tier one data

AUD/USD has recovered from below the 0.7220 level after a strong level of supply capped the bid of yesterday's Asian market's performances and subsequent follow through European highs of 0.7266.

AUD/USD was strong until risk aversion played out, taken on by markets on the Brexit story as polls showed the leave campaign in the lead. AUD/USD subsequently dropped to 0.7214 before a slight recovery to current spot highs of 0.7231. We now await a potentially even busier day ahead with plenty of tier one data from China and in Australian GDP Q1 expected 2.8% y/y and 0.8 m/m.

AUD/USD levels

AUD/USD rallied from the 50 sma on the hourly sticks yesterday and through the 200 sma on the same time frames as it broke through the 0.72 level until testing the 100 sma on the 4hr sticks converging with the 200 dma at 0.7251 with short-term gains through that level fell short of the 20 dma.  The price is now back below the bullish 20 SMA located at 0.7238.