Aussie and Kiwi Hold Near Multi-Month Highs Amid US Dollar Weakness

The Australian and New Zealand dollars continue to hold near multi-month highs on Monday, buoyed by the weakness of the US dollar. The Aussie was steady at $0.7165 after a strong rally last week, with the currency strategist Joseph Capurso from Commonwealth Bank of Australia predicting it could edge higher above 72 cents this week due to a weaker USD.

However, resistance looms large for both currencies, with key chart levels approaching that could test their rallies. The next barrier for the Aussie is at $0.7278, while the kiwi faces a double top of $0.5993.

In New Zealand, data showed retail sales fell 0.5% in the second quarter, driven by higher energy prices and a significant drop in fuel sales. Meanwhile, economists polled by Reuters estimate that monthly inflation data due on Wednesday will show consumer prices rose 0.8% in July, with annual inflation slowing to 3.2% from 3.8%. The Reserve Bank of Australia is also set to release minutes from its August policy meeting.