Australia, NZ dollars hold near multi-month highs, resistance looms large

Business Recorder reported that the Australian and New Zealand dollars stayed close to 2-1/2-month highs on Monday, with investor unease over the greenback and US fiscal spending in the background. The Aussie was quoted at $0.7165 after a 0.8% gain on Friday, which lifted its weekly rise to 1.2%. That was the eighth straight weekly advance, the longest such streak since 2020.

The New Zealand dollar was little changed at $0.5975 after rising 0.6% on Friday, finishing the week 1.5% higher. Its next barrier is a double top at $0.5993, while the Aussie faces resistance at 72 cents and $0.7278. This follows US Treasury Secretary Scott Bessent's attempt to cap longer-dated Treasury yields, which did not ease concerns over fiscal spending and inflation.

Minutes from the Reserve Bank of Australia's August policy meeting are due, and the bank held its key interest rate at 4.35% for a second straight meeting after raising it three times this year. Reuters' poll of economists sees July consumer prices up 0.8% on the month, while a base effect is expected to pull annual inflation to 3.2% from 3.8%. In New Zealand, retail sales dropped 0.5% during the second quarter, and swaps put a 90% likelihood on the Reserve Bank of New Zealand lifting its rate to 2.75% next Wednesday.