AUD/USD has retained a bullish bias, recovering from the 200 sma on the 4hr sticks at 0.7590 and has made highs of 0.7639 of where bears capped the bid.

How to play, "The New Norm for Dummies"

AUD/USD managed a recovery in the European session's morning after suffering a blow overnight in a continuation of the downside from the end of last week's pro US dollar environment on the back of hawkish Fed speak. However, as we turn towards this week's GDP and Jackson Hole, the sentiment is dubious over a recovery in the US and meaningful Fed action in respect to them normalising policy. Meanwhile, there is little on the cards in respect to data from the Aussie economy and focus remains with technicals and keeping an eye on Gold and the DXY.

Gold intermarket: will the dollar topple and send gold higher?

AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet, explained that technically, the 1 hour chart shows that the price is above a horizontal 20 SMA, while the technical indicators consolidate within positive territory, far from suggesting further gains ahead. "In the 4 hours chart,  however, the upside looks limited, as the 20 SMA stands a few pips above the mentioned daily high, while the technical indicators recovered from overbought readings, but lost upward strength and are currently turning lower within negative territory."