Based on the measurement principles of GRACE satellites, the observation equations are set up using the energy balance approach. The Earth's gravitational field complete up to degree and order 120 is recovered applying the preconditioning conjugate gradient iterative approach by numerical simulation. Assuming an accuracy of 1?m/s in range-rate measurements of the K-band microwave ranging system, the matching relationships of accuracies of K-band microwave ranging system, SuperSTAR Accelerometer, position vector and velocity vector measurements are investigated.