AUD/USD: supported by 50 sma on 1hr sticks vs heavy NY supply

AUD/USD is consolidated, but recovering from downside pressures received overnight from 0.7560/70 recovery highs.

US dollar strength was the theme again, backed on investors sentiment for a US economy that might just be on track after all following the nonfarm payrolls of last week that surprised heavily to the upside. "The failure to break above the 0.7570/75 area argues for further slippage today, sub-0.7530. The strong US dollar is the main factor at play," explained analysts at Westpac. They also argued that the ongoing uncertainty generated by Brexit plus further RBA easing should be negative for the AUD. "We target sub-0.72." For the day ahead we look to NAB business confidence and conditions. 

AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that, "In the 4 hours chart, however, the price has bounced from a still bullish 20 SMA, currently the immediate support around 0.7520, whilst the Momentum indicator is bouncing modestly from its 100 level and the RSI indicator hovers around 54, limiting chances of a steeper decline. The key support stands at 0.7450, a major Fibonacci level, with declines towards it probably attracting buying interest."