The Australian dollar is surging - here's what's happening in FX

Good morning!

The Australian dollar is surging, up 1.1% to .7262 per dollar.

On Monday, the Aussie dollar briefly traded near .7150 in early Asian trade before closing little changed near .7180.

"Provided it holds above $0.7220 now, it can work its way a bit higher," wrote Marc Chandler, the global head of currency strategy at Brown Brothers Harriman, in a morning note to clients.

"As a mile marker, note that the 20-day moving average is found near $0.7285," he added. "The Aussie has not been above this average since a downside reversal was posted on May 3."

As for the rest of the world, here's the scoreboard as of 7:54 a.m. ET:

• The euro is stronger by 0.2% at 1.1164 against the dollar. Consumer prices in the eurozone fell 0.1% year-over-year in May, which was a slight uptick from April's 0.2% yoy decline. Taking out the volatile food and energy prices, the core reading climbed 0.8% YoY, in-line with estimates.
• The US dollar is little changed at 95.52. "The main narrative of increased prospects for a Fed hike in June or July has been pushed off center stage as the market reacts to local developments and investors await US economic data," wrote Chandler in a note to clients.
• The British pound is little changed at 1.4628 against the dollar after the latest ORB poll conducted by the Telegraph suggested that the Brexit vote might be closer than everyone thinks. The poll showed that 51% of respondents supported Remain, while 46% supported Leave.

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