DAILY CURRENCY OUTLOOK

• No high-impact local data this week, only high-impact US events that may strengthen USD.
• Potential upside to AUD/USD this week if RBNZ hikes the cash rate on Wednesday.
• Expecting the AUDUSD to range between 0.6680 and 0.6570 this week on technical analysis.

Not much happening in the AU market that could potentially support the AUD, aside from the RBNZ rate hike, which if hiked by 50bps, may support the AUD/USD to the upper bound.
USD has a higher probability of increasing this week if there is an agreement to increase the US government debt ceiling.
US Treasury Secretary Yellen expected to provide an update on Thursday to Congress on when the US government will “run out of money”. FOMC minutes released on Thursday, along with the PCE figures on Friday, can provide insights into whether the FED is unlikely to consider rate cuts over the next few policy meetings.
The general outlook is that major players in the global economy are expected to have a recession at either end of this year or early next year.
The US PMIs released on Tuesday will provide an indication of whether major economies remain on a growth trajectory.
USD is a global cyclical currency, so if the world economy begins to weaken, the USD will rise, i.e.) AUD and other counter pairs may fall further.