AUDNZD Holds Near Multi-Month Highs Amid US Debt Concerns

The Australian and New Zealand dollars held steady near their multi-month highs on Monday due to concerns over greenback debt woes. The Aussie was unchanged at $0.7165 after a strong week, having risen 1.2% last week and marking the eighth consecutive week of gains.

Currency strategist Joseph Capurso at Commonwealth Bank of Australia believes that the AUD/USD can edge higher above 72 cents this week mainly due to a weaker US dollar. However, he notes that a new year-to-date high above $0.7278 remains unlikely.

The Reserve Bank of Australia's upcoming inflation data on Wednesday will be closely watched, with economists estimating consumer prices rose 0.8% in July and annual inflation likely slowed to 3.2%. Meanwhile, the Reserve Bank of New Zealand is expected to raise its policy interest rate to 2.75% next week due to repeated warnings about the need for less stimulative policy.